Kakuzi Kenya Plc, a leading agro-processing firm listed both at the Nairobi Securities Exchange(NSE) and London Stock Exchange, has issued a profit warning notice and cautionary statement to investors and the general public.
“This profit warning arises from trading information, market forecasts and the preliminary unaudited full-year financial results among other data sources currently at the Board’s disposal,” said Nicholas Ng’ang’a Kakuzi Plc Board Chairman in a statement.
The firm thus reports that its net earnings for the year ended 31st December 2021 will potentially be at least 25% lower than that reported for the year ended 31st December 2020.
Kakuzi earnings by slump in global avocado prices
Kakuzi says its anticipated drop in full year earnings is as a result as a result of 18% drop in production of Hass Avocado.
There was also lower global market prices in Hass avocado in its European markets due to an oversully of the fruit from Peru and Columbia, which impacted prices during the same period that the Kakuzi product was also in the market.
” However, our other crops have performed as expected with an increasingly strong performance from the macadamia business, which validates the investments made into diversification over the years,” said Ng’ang’a.
Kakuzi Plc plans to continue with this diversification strategy so as to mitigate the global market volatility and overreliance on any one product.
When trading ended at the Nairobi Securities Exchange(NSE) this Wednesday, Kakuzi had a share price of KSh 420.00. This was a 9.1% gain over its previous closing price of KSh 385.00
Kakuzi began the year with a share price of KSh 385.00 KES and has since gained 9.09% on that price valuation, ranking it second on the NSE in terms of year-to-date performance.
Kakuzi Plc is engaged in the cultivation of tea; growing, packing and selling of avocados, livestock farming, growing and selling of pineapples, and forestry and macadamia development.
The Company’s product includes tea, avocado, pineapple, macadamia orchards, livestock and forestry.
The Tea estate is situated in Nandi Hills, located 330 kilometers north west of Nairobi, Kenya, on the equator, west of the Great Rift Valley.
The Company’s farms 408 hactares of avocado producing and exporting both Fuerte and Hass cultivars.
The Company’s Livestock products and services include cattle breeding services, which consist of Boran and Boran Simmental crosses for dual purpose; beef and dairy cattle; it slaughter and deliver safe, quality Halaal beef to Nairobi, Offals and Hides, Cattle Manure and Quality Hay.