Sasini Plc, a listed coffee and tea producer, posted a net profit of KSh 12.6 Million for the financial period ended 30th September 2020. This is compared to a net loss of KSh 337.7 Million over the prior fiscal year.
Profit from operating activities went up 124% to KSh 74.25 Million from a loss of KSh 314.19 Million the previous year.
Improved coffee prices
The firm’s yearly financial performance was buoyed by improved coffee prices on the world market and enhanced performance of its avocado business.
The firm was hit hard by low prices at the local tea auction while the COVID-19 pandemic led to market closures in Q2, leading to the poor performance of the macadamia business.
Balance Sheet size
The Coffee and tea dealer’s financial results for the year ended 30th September 2020, shows that its balance sheet size shrunk slightly from KSh 14.7 Billion to KSh 14.6 Billion while the firm’s Total Comprehensive Income declined to KSh 168 Million from KSh 1.9 Billion the year prior.
However, revenue increased from KSh 2.8 Billion to KSh 4.1 Billion at the end of 30th September 2020, an increase of 48%.
Due to increased mechanization, the firm was able to bring down the cost of production in its tea business. “We continue to see great results from the mechanization of our tea business,” said the firm in a statement.
The firm’s Managing Director Martin R Ochieng, attributes the firm’s poor performance in 2019 to collapse of tea and coffee prices. Depressed prices were due to overproduction in India and China.
The firm has also indicated its plan to continue diversification into Macadamia and Avocado units, to reduce reliance on its mainstream coffee and tea business.
Through wholly-owned subsidiaries, Sasini Plc has interests in the tea, coffee, dairy, livestock, horticulture and tourism sectors in Kenya. Bulk tea produced by this firm is sold through the Mombasa auction or direct sales to export customers.
Shipments to Asia were disrupted due to effects of COVID-19, affecting coffee, tea, avocado and macadamia exports by Sasini.