Limuru Tea Plc has issued an alert to shareholders that the Company’s performance is expected to record a decline in net profits for the financial year ended 31st December 2020
“The board is of the view that the estimated decrease for the period is due to lower tea prices that were realized in 2020 on account of rising cost of production and a global downturn triggered by the COVID-19 pandemic,” said Alison I.N Kariuki, the listed firm’s Company Secretary.
Limuru Tea to publish 2020 end-year results in March
Details of the Company’s financial information will be disclosed when after completion of an audit for the financial year ended 31st December 2020. These results are expected to be published by the middle of March 2021.
Listed Limuru Tea Plc, is a Kenya-based company 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 it with management services in manufacturing, selling, and marketing 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.
Financial performance in 2019
At the end of the period ended 31st December 2019, Limuru Tea Plc posted a pre-tax profit of KSh 3 Million compared to KSh 3.7 Million the year prior.
During Q1, 2020, there was a significant drop in tea auction prices while volumes were on the increase, a trend that has severely hit the firm’s net earnings for the year.