Despite depressed tea prices on the global market, listed green tea grower Limuru Tea Plc has cut down its Net Losses at the end of the first six months of this year to KSh 11.1 Million.
This loss in earnings is compared to a net loss of KSh 18.2 Million recorded in H1, 2019.
According to the firm’s unaudited financial results for the six months ended 30th June 2020, its turnover nearly doubled to KSh50.6Million against KSh 29.4 Million in H1, 2019.
This increase was driven by higher sales volumes which offset the adverse impact of declining market prices.
The firm produced 2,172 tonnes of green leaf which was manufactured into 458 tonnes of Black Tea, a 72% increase in made tea volumes compared to H1 2019.
Limuru Tea management said the first quarter of the year 2020 witnessed good weather conditions but a drop in the Tea auction prices.
It has determined to continue with strategic initiatives to ensure any risks are mitigated in its continued focus to grow the business.
The firm, which has not declared a dividend for the period, notes that COVID-19 pandemic remains a risk to its business.
Limuru Tea is still in the red ahead of a review that will see it fall under a separate entity as Unilever NV alters its global tea business.
The separation will be concluded by the end of 2021, Limuru Tea said in a notice adding that Unilever Tea Kenya Limited’s shareholding in Limuru Tea will remain unaffected.
ALSO READ: https://www.bloombergquint.com/business/unilever-to-place-limuru-tea-of-kenya-under-separate-company