Kakuzi Plc, an agricultural firm listed at the Nairobi Securities Exchange(NSE) and also trading at the London Stock Exchange, posted a 49% decline in net profit for the financial year ended 31st December 2021. This is compared to net earnings of KSh 622 Million the prior year.
The firm also saw its Pre-Tax Profit drop from KSh 847.5 Million in 2020 to KSh 471.6 Million in 2021 while its profitability as measured by Earnings per Share(EPS) dropped from KSh 31.74 in 2020 to KSh 16.31 in 2021.
“The year saw the group post reduced earnings due to lower avocado production and prices. This was due to the avocado orchards entering their bi-annual offseason bearing cycle which
results in a large crop of avocados in one year, followed by a small crop the following year,” said Nicholas Ng’ang’a- Chairman, Kakuzi Plc Board of Directors.
Ng’ang’a said that Kakuzi, however, experienced greater earnings from macadamia sales during the year as a result of increased yields from its young orchards.
“Product diversification and value addition remain key investment areas to enhanced stakeholder value and our continued commitment to these is critical for the long term,” said Ng’ang’a.
In its annual report 2021, Ng’ang’a said the Hass avocado volumes were lower than the previous year by 17.5% as the orchards entered a low production year.
The revenue decline was also compounded by a fall in the European market price due to a higher fruit supply from Peru and Columbia.
“Avocado production volumes were lower than in 2020, and we could not meet all of our customers’ orders. However, it is instructive to note that the Kakuzi order book from the international markets was far more than we could supply, signifying continued market confidence and trust in our products,” said Ng’ang’a.
Kakuzi Board of Directors has recommended an increase in the dividend per share to KSh 22.00 compared to KSh 18.00 per share in 2020. The dividend shall be paid on or about 30th June 2022 to the shareholders on the members’ register at the close of business on Tuesday, 31 May 2022.
The Annual General Meeting(AGM) of the Company will be held virtually on Tuesday, 17 May 2022 at 12.00 Noon.
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 products include tea, avocado, pineapple, macadamia orchards, livestock and forestry.
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