Eaagads Limited (NSE: EGAD) announced its half year results for the six months ended 30 September 2018, reporting an after tax loss of Ksh46.6 million.This was mainly attributed to a 19% y/y dip in sales revenue to Ksh36 million from the previous period owing to reduced coffee volumes and an 11% y/y increase in cost of production as a result of the preventive measures they undertook to safeguard the crops against diseases.
However, early crop production volumes have increased by 14.4% y/y and the sales price achieved from the sales of coffee has increased from USD2.6 per kg to USD3.3 per kg for this period.
The increased cost is expected to be overshadowed by improved crop production hence revenues in the second half is expected to improve.
Total assets declined by 3.1% y/y from Ksh919 million to Ksh892 million. The share price has lost 31.9% year-to-date to close at Ksh15.50 on Monday.