Sasini Plc, one of the leading producers of tea and coffee in Kenya, reported remarkable improvement in net profit in the half-year period that ended on 31st March 2021.
Despite the many disruptions caused by the covid19 pandemic, the company’s half-year net profit jumped to KSh122 Million from a KSh13 million loss in the first half of 2020. Sasini attributes the improved performance to the mechanization of the tea harvesting process which led to significant cost reduction for the company. The tea producer cut its workforce by 1,364 staff in 2020 after acquiring the tea harvesting machines.
A decline in tea prices and low demand for tea and coffee led to a 2% dip in revenue to KSh2.024 billion at the end of March 2021, from KSh2.070 billion in March 2020.
Sasini, which exports tea, coffee, macadamia, avocado and other agricultural produce, is optimistic about the second half of the year. The start of the avocado season in April and increased shipment of macadamia nuts are expected to boost the company’s revenue in the remaining six months of the year. In addition, Sasini is counting on the prevailing good weather and improved tea prices to deliver good financial results at the end of the year.
The company’s directors recommend the payment of an interim dividend of KSh0.50 for every ordinary share to investors on the register at the close of business on 2nd June 2021. The interim dividend payment will amount to KSh114 million.
Also read: Sasini Slashes a Total of 1,364 Jobs in 2020