Sasini PLC posted a KSh 113.1mn net loss for the half-year ended 31 March 2025, weighed down by higher costs and flat revenues as pressure on the group’s core agribusiness operations continues.
- •Group revenue stood at KSh 2.96bn, slightly lower than the KSh 2.998bn reported in H1 2024.
- • However, the bottom line deteriorated significantly from last year’s KSh 36.1mn loss, as input costs, weather disruptions, and subdued commodity prices dragged performance.
- •By comparison, Sasini reported profits in both H1 2023 (KSh 124.7mn) and H1 2022 (KSh 419.8mn).
Key Metrics (H1 2025 vs H1 2024)
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | KSh 2.96bn | KSh 2.998bn | -1.1% |
| Cost of Sales | KSh 2.39bn | KSh 2.37bn | +0.95% |
| Operating Loss | KSh 85.3mn | KSh 43.9mn | Widened |
| Loss from Biological Assets | KSh 25.6mn | Gain of KSh 7.8mn | Down sharply |
| Net Loss (after tax) | KSh 113.1mn | KSh 37.7mn | Widened |
| Cash and Deposits | KSh 736.4mn | Not disclosed | — |
| Infrastructure Bonds | KSh 168.5mn | Not disclosed | — |
| Dividend Declared | None | None | Unchanged |
The group cited multiple headwinds during the period. Production costs increased sharply, driven by higher input prices and logistics. Unpredictable weather further reduced yields, particularly in tea. Additionally, global tea prices remained weak, while export disruptions, especially for avocado and macadamia, compounded revenue pressures.
Sasini noted that coffee performed relatively well thanks to firm global prices and strong trading performance. However, tea, avocado, and macadamia segments underperformed, resulting in an operating loss of KSh 85.3mn before minority interest. A further KSh 25.6mn biological asset revaluation loss contributed to the net result.
Despite the earnings setback, Sasini maintained a robust liquidity position. The company held KSh 736.4mn in cash and demand deposits, alongside KSh 168.5mn in long-term government bonds. Debt levels remained manageable, supporting its ability to navigate the difficult period. The board did not declare an interim dividend, opting instead for prudent cash management.
While cash flow details were limited, the group likely relied on liquid reserves and borrowings to fund operations. Sasini continues to invest in production efficiency, including mechanisation and plant upgrades, though no major new capex initiatives were disclosed for H1 2025.
A recovery in tea prices, resumption of avocado and macadamia exports, and higher coffee volumes are expected to support a modest rebound. Heavy rains in recent months should also improve crop yields. Still, the pace of recovery will depend heavily on global commodity markets and weather patterns.
