Sasini Limited is a company engaged in growing, processing and sale of tea and coffee, commercial milling and marketing of coffee, value addition of related products, forestry, dairy operations and livestock. The Company operates in three segments: Tea, Coffee and Others.
Its operations are located in Bomet, Nyeri, Mombasa, Kiambu and Nairobi counties in Kenya.
Its tea, rental and leasing operations are located in Bomet and Mombasa counties.
The Company’s Coffee and dairy operations are located in Nyeri and Kiambu counties.
Its subsidiaries include Kipkebe Limited, Aristocrats Tea & Coffee Exporters Limited, Sasini Coffee House Limited and Mweiga Estate Limited, among others.
Half Year 2016 Financials
For the six month period ending 31st March 2016 Sasini performed as follows:
Revenues grew by 25.1% to KES 1.587 Billion compared to KES 1.268 Billion in 2015.
Profit Before Tax stood at KES 746 Million compared to a loss before tax made of KES 131 Million in a similar period the previous year.
Profit for the period stood at KES 522 Million. This comprised a profit of KES 514 Million allocated to owners of the parent, of which KES 197 Million arose from operating activities and KES 317 Million was due to fair value gains in biological assets.
Earnings per share were KES 2.25
The Board recommended an interim dividend of 25%.
The company attributed this performance due to favorable weather conditions leading to noticeably higher production volumes especially in the tea division. Tea prices experienced in that period were relatively high.
Read: 2016 Tea output expected to rise 15% to 450M Kg on heavy rains -KTDA
Sasini also adopted an aggressive marketing strategy in the coffee division which also boosted sales growth.
Recently there has been a decrease in coffee and tea prices which may not be a positive signal for the second half of the year i.e. if the trend persists. The company potentially sees this as a threat which may extinguish gains made during the 1st half. They have subsequently put a plan in place and are ensuring they mitigate such an event from occurring. Kenyan Wall Street sees this as a potential opportunity where derivatives come into play.
Share Price
In the markets Sasini is currently trading at KES 17.80/share. Something to remember is that in 2015 Sasini topped our list of gainers and emerged one of the best counters on the NSE, however, In the last 3 months the counter has been on the downside. Overall the gains made in 2015 have not yet been eroded.
Download: Sasini Ltd – Unaudited Financial Results for the Six month Period Ended 31st March 2016.pdf
Source: (Sasini Limited, Financial Times, Kenyan Wall Street)
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