Limuru Tea’s net profit rose by a fifth to Sh4.3 million in the half year ended June, helped by increased output and higher prices of tea in the world market.
The agricultural firm’s turnover jumped 40 per cent to Sh59.2 million, outpacing expenses whose details were not disclosed.
“The higher profit was largely because of the increased volumes and better price in the first half of 2016 which positively impacted on the turnover,” Limuru said in a statement.
The company produced 1,764 tonnes of green leaf and used it to manufacture 390 tonnes of black tea in the review period.
“This was a 22 per cent increase in made tea volumes compared to the first half of 2015,” the firm said.
Limuru attributed the higher output to favourable weather conditions, adding that prices were higher in the period compared to the year before.
The company did not declare an interim dividend and offered a cautious guidance to full year earnings.
“If good weather conditions continue into the rest of the year, the full year crop is expected to be higher than last year but prices are likely to maintain a downward trend. The 2016 performance therefore is expected to be modest,” Limuru said.
