Listed agricultural company Limuru Tea has posted a KSh2.5 million net profit from 2017’s KSh22 million net loss. The results were supported by a 35 per cent growth in revenue from KSh80 million in 2017 to Sh109 million in 2018. Analysts had predicted a drop in financial performance due to lower tea sales and labour related challenges in the tea sector.
The company’s short term assets grew from KSh140 million to KSh160 million; a 14 percent jump largely driven by growth of its green leaves assets and receivables. Its long term assets declined by 11 percent to KSh109 million.
The tea producer increased its debt payable in one year by 15 percent to reach KSh46 million from KSh39 million booked the previous year. In contrast, its long term debt went down by 15 percent to KSh30 million.
In January 2019, Limuru tea appointed a new chief executive, Gerridina Johanna Maria, after its former CEO resigned from his position.
The board members recommend KSh1.00 dividend per share for the financial year 2018.
