Limuru Tea Plc recorded a net loss of KSh 8,597,000 during the first six months of this year compared to a net loss of KSh 11,071,000 realised over a similar period last year.
The listed firm’s pre-tax loss was KSh 8.4 Million in H1, 2021 compared to a profit before tax of KSh 11.4 Million in H1, 2020, improvement directors of the firm attribute to cost efficiencies undertaken by the business.
Dr Richard Korir, Chairman of the Board at Limuru Tea, said H1, 2021, has seen a modest improvement in production.
” Whilst the low tea market prices remain a concern, the management will keep undertaking strategic initiatives of cost efficiciencies and quality improvement to ensure maximum returns,” said Dr Korir.
Directors of the firm have not recommended any interim dividend.
In H1, 2021, the firm produced 1,901 tonnes of green leaf, manufactured into 433 tonnes of black tea. This was a 6% decrease in made tea volumes compared to H1, 2020.
Total revenues declined 8% to KSh 47 Million in H1, 2021 compared to KSh 51 Million over the same period in 2020. This decline was due to lower production volumes and declining market prices.
Limuru Tea Plc, formerly Limuru Tea Company Limited, is a Kenya-based company. The Company is engaged in the growing of green leaf tea. It owns approximately 282 acres of tea plantation situated 4 kilometres east of Limuru town.
The listed firm is an outgrower to Unilever Tea Kenya Limited, which provides management services in manufacturing, selling and marketing of its tea.
The Limuru Tea Green leaf is manufactured in the nearby Unilever Tea Kenya Limited Mabroukie factory, where it is sold for export at the Tea Auction.
During the first quarter of 2020, there was a significant drop in tea auction prices while volumes were increasing, a trend that severely hit the firm’s net earnings for 2020.