Nairobi Securities Exchange agricultural listed company Limuru Tea released its full year results for the period ending 31 December 2016. The tea company’s revenues went down by 15 percent from Ksh 122 million in 2015 to Ksh 103 million in 2016.
The company gave out a profit warning earlier in February 2017 cautioning investors of an expected drop in full year earnings due to:
- •The impact of the amendment of IAS 41 (Biological Assets Valuation), Bearer Plants to IAS 16 (Property, Plant and Equipment) resulting in the classification of Bearer Plants as depreciating assets negatively affecting earnings as a result.
- •Increased production costs
in effect Limuru Tea’s profits before tax fell from Ksh 7.681 million in 2015 to a loss before tax of Ksh 26.731 million in 2016. The company did not declare any dividend for the 2016 financial year.
The company’s shareholders equity dropped by 10.5% from Ksh 229 million in 2015 to Ksh 205 million.
In the markets Limuru Tea was last spotted trading at Ksh 500 per share on 24 March 2017, 2.04% above its 52-week low of 490.00, set on 25 October, 2016.
Download : Limuru Tea Company Limited- Profit Warning Announcement
Source: (Limuru Tea, Kenyan Wall Street, Nutcracker Analytics Portal)
