Listed agricultural company Limuru Tea PLC has posted a deeper half-year loss for the six months ended June 2025 despite modest revenue growth, as rising labour costs weighed heavily on margins.
- •The company reported a net loss of KShs 22.2 million, widening from a KShs 6.8 million loss in the same period last year, translating to an earnings per share of KShs -9.25, compared to KShs -2.81 in H1 2024.
- •Once known for stable, albeit thin, profitability from its plantation operations, Limuru Tea continues to grapple with rising costs and volatile global market prices.
- •Despite a 5% increase made in tea volumes to 433 tons and an 8% rise in turnover to KShs 56.8 million, operational cost pressures outpaced revenue gains.
The balance sheet showed some erosion of equity, with retained earnings falling to KShs 128.9 million from KShs 151.2 million at year-end 2024. Total assets declined 10% to KShs 176.5 million, driven by lower receivables and modest depreciation of property, plant, and equipment. Current liabilities increased to KShs 19.9 million, reflecting higher payables and accrued expenses.
On cash flows, the company generated only KShs 0.3 million from operations, compared to KShs 7.9 million a year earlier, underscoring weaker underlying cash generations. Cash balances, however, remained broadly steady at KShs 7.5 million.
Key Highlights- H1 2025 vs H1 2024
| Metric | June 30, 2025 | June/December 30, 2024 | YoY Change |
| Turnover | KShs 56.84 Million | KShs 52.85 Million | 7.55% |
| Pre-tax Profit/Loss | KShs -22.21 Million | KShs -19.60 Million | Worsened |
| Net Profit/Loss | KShs -22.21 Million | KShs -6.75 Million | Worsened |
| Earnings per Share | KShs -9.25 | KShs -2.81 | Worsened |
| Total Equity | KShs 152.95 Million | KShs 175.15 Million | -12.67% |
| Retained Earnings | KShs 128.95 Million | KShs 151.15 Million | -14.69% |
| Total Assets | KShs 176.47 Million | KShs 196.22 Billion | -10.07% |
| Current Assets | KShs 105.68 Million | KShs 120.05 Million | -11.97% |
| Cash & Cash Equivalents | KShs 7.55 Million | KShs 6.97 Million | 8.32% |
| Receivables & Prepayments | KShs 95.44 Million | KShs 110.87 Million | -13.92% |
| Total Liabilities | KShs 43.46 Million | KShs 36.67 Million | -18.52% |
| Net Cash from Operations | KShs 0.31 Million | KShs 7.92 Million | -96.09% |
Directors opted not to recommend an interim dividend, citing rising labour and production costs, as well as soft global tea prices influenced by foreign exchange challenges in key markets.
Looking ahead, the company has signaled continued cost containment and quality improvement initiatives to mitigate margin pressures. However, with global tea market dynamics unfavourable and labour costs elevated, earnings volatility is likely to persist in the near term.
