Kakuzi Plc, a listed agro-based firm, has recorded a 28.6% drop in net earnings for the first six months of 2021 to KSh 194.6 Million compared to KSh 272.8 Million in H1, 2020.
The firm’s unaudited H1, 2021 financial results indicate that Kakuzi’s pre-tax profit was KSh 276.7 Million compared to KSh 204.1 Million within the same period last year.
Kakuzi records fall in production of avocado, macadamia
“The harvesting of our flagship products, avocado and macadamia, began in earnest in June. The preliminary production data available at this stage indicates that the avocado crop output to market is significantly lower than 2020, whilst the macadamia crop is in line with earlier projections,” said Kakuzi’s Board Chairman Nicholas Ng’ang’a.
Kakuzi sales declined from KSh 889.9 Million in H1, 2020 to KSh 888.9 in H1, 2021.
Total Comprehensive Income also fell from KSh 272.8 Million in H1, 2020 to KSh 194.6 Million in H1, 2021.
“We anticipate that the COVID-19 Pandemic will continue to disrupt the potential of our markets to absorb our produce to a certain degree for the rest of this year.
This is due to the market slowdown associated with lockdown and related restrictions,” said Ng’ang’a.
He said while it is still early to forecast how these developments will affect the firm’s full-year performance, the board was closely monitoring the events actively.
Earnings per Share(EPS) indicate the Company’s profitability declined from KSh 13.92 in 2020 to KSh 9.93 in 2021, while cash and cash equivalents stood at KSh 1.2 Billion from KSh 1 Billion in H1, 2020.
Directors of the firm have not recommended the payment of any interim dividend.
“The mid-year is always a challenging time to make any precise projections for the year-end performance. We have a good balance of products to market, though given the unique circumstances of the last 18 months that the world finds itself in, we remain exposed to market and price volatility,” said Ng’ang’a.
The leading international markets for Kakuzi products remain negatively impacted by COVID-19, although there is recovery and growing demand in the traditional key nut markets.
On the other hand, high supply levels of avocados into Europe from Peru and COVID restrictions have a downward pressure on prices.
Positive growth continues to be registered from the firm’s Blueberry sales in the domestic and regional markets. This is due to the growing consumer preference for quality locally produced berries for catering and home consumption.
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