Limuru Tea Plc, a listed firm engaged in the growing of green leaf tea, recorded a net loss of KSh 9.6 Million at the close of financial year ended 31st December 2021, up from a net loss of KSh 3.7 Million in 2020.
In January 2022, the firm issued a profit alert, warning that its 2021 earnings would decline by more that 25%.
The firm recorded a pre-tax loss of KSh 14.2 Million in 2021 compared to a pre-tax loss of KSh 7.9 Million in 2020.
The declined performance was largely driven by Inflationary pressures and lower production volumes realized in 2021 compared to 2020 due to lower rainfall by 40%.
Turnover reduced by 13% to KSh 84 million in 2021 from KSh 97 million in 2020. This was driven by the 12% reduction in made tea volume and 1% drop in the net realized price.
The listed agro-firm’s profitability, as measured by Earnings Per Share(EPS) declined from negative KSh 1.53 to negative KSh 3.98.
Limuru Tea Plc Directors said that whereas post COVID-19 pandemic adverse impacts, market instability and general cost inflation remains a concern.
The board and management of the firm said that necessary precautions have been taken to safeguard staff and interests of the business in 2022 and beyond.
The firm continues to see yield improvement from the investment made in prior years. Cost management remains a key focus area.
The management said it will continue with strategic initiatives to ensure any risks are mitigated in its continued focus to grow the business.
In 2021, Limuru Tea Plc produced 3,207,330 (2020 – 3,882,430) kilograms of green leaf, which in turn was manufactured into 743,453 (2020 – 844,103) kilograms of black tea. Green Leaf and black tea reduced by 17% and 12% respectively in 2021.
The Directors do not recommend payment of dividend for the year ended 31 December 2021, same as in 2020.
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