Kenya Orchards, a company that sells processed fruits, vegetables, and other food products, reported a net loss of KSh12.5 million at the end of 2020, compared to a net profit of KSh8.4 million at the end of 2019.
The firm issued a profit warning in October 2020, saying that it expected a significant drop in full-year earnings due to challenges related to the covid19 pandemic.
Kenya Orchards’ revenue fell by 5% in the 12 months period to KSh56.99 million in December 2020 from KSh60.0 million in December 2019. The total cost of sales increased conservatively to KSh48.8 million from KSh48.6 million in the same period a year ago.
The firm’s administrative expenses doubled to KSh7.5 million at the end of 2020, from KSh3.2 million at the end of 2019.
Kenya Orchards, which operates in the consumer goods industry, faced difficulties in the past year as the demand for canned fruits and vegetables fell sharply and access to international markets became limited.
The firm’s total assets dipped by 7% to KSh126 million from KSh136 million in 2019. The company suffered a KSh1 million loss from operating activities in the year that ended on 31st December 2020.
Also read: Kenya Orchards Issues Profit Alert