Sasini Plc has more than tripled its net profit in the half-year ended March, to Sh421.3 million in the review period compared to Sh122.2 million the year before. The jump in profits was attributed to higher sales and lower costs.
The Nairobi Securities Exchange-listed firm recorded a 65.3 per cent growth in sales to Sh3.3 billion, driven by higher prices of tea and coffee that also reflected the impact of the weakening of the Kenya shilling. The company also benefited from higher gross margins, which nearly doubled to 16.3 per cent on the back of lower operating expenses.
Cash and cash equivalents in the firm stood at Sh1.1 billion during the period, up from Sh821.9 million the year before.
Sasini Declares an Interim Dividend
“In view of the good performance, the directors recommend the payment of an interim dividend of Sh1 per share… payable on or about July 14 to members on the register at the close of business on June 2,” Sasini said in its financial release.
Saini had paid an interim dividend of Sh0.5 per share a year earlier, with the doubling of the payout reflecting its growing cash reserves.
The agricultural company expressed optimism in the second half of the year, citing expectations of higher production and stable prices for the commodities it deals in.
“The remaining six months of the year look positive with the resumption of the avocado and macadamia export. The tea prices are also expected to remain stable despite the disruptions expected from the war in Ukraine. The resumption of the rains is expected to support both the tea production volumes and the coffee early crop to achieve expected production volumes.” the company said in a statement.