Limuru Tea PLC has reported a revenue decline of 23 percent to Sh80 million compared to 104 million in 2016.
“This was attributed to the drop in the sales volumes offsetting the benefits realised from the improved prices in the market and impact of employees’ industrial action experienced during the year which affected the volume of leaf realised,” the company says.
Limuru Tea generated 2,039,613 kilograms of green leaf in 2017 which was processed into 469,609 kilograms of black tea. The quantity of green leaf produced in 2017 declined by 35 percent compared to 2016. The decline was attributed to the drought that occurred last year.
The company has also reported a pre-tax loss of Sh31.6 million in the financial year ended 31 December 2017 in contrast to Sh26.7 million pre-tax loss reported in FY16. The increase in pre-tax loss is as a result of the turnover decreasing from Sh103.9 million in 2016 to Sh80.4 million in 2017 and inflationary pressure on costs.
The company’s net current assets in FY17 was Sh100.8 million compared to Sh116.298 million in FY16. Moreover, the earnings per share in FY17 was Sh9.22 compared to Sh7.95 in FY16. Similar to 2016, shareholders will not receive any dividends for the financial year ended 31 December 2017.
“If the improved weather conditions continue into the second quarter of the year and the market remains steady together with the cost management initiatives the business is undertaking, the full-year results are expected to be better than those of last year,” the company says in a statement.
