Williamson Tea Kenya Plc and its associate Kapchorua Tea Kenya Plc have posted significantly weaker financial results for the year ended 31 March 2025, underscoring mounting pressures in the global tea industry.
- •Kapchorua Tea saw its net profit decline by 55% to KSh 181 million, down from KSh 399 million a year earlier, despite a modest 1.1% revenue growth to KSh 2.22 billion.
- •Williamson Tea swung to a net loss of KSh 166 million, reversing a profit of KSh 527 million in FY2024.
- •The company’s operational loss stood at KSh 392 million, and total comprehensive loss widened to KSh 209 million, while revenues slipped 2% to KSh 4.11 billion.
Kapchorua’s operating profit plummeted by 75%, while earnings per share dropped from 51.04 to 23.16.
The downturns align with profit warnings issued on 20 May 2025, where both firms cautioned that after-tax earnings would decline by more than 25%. The twin tea producers attributed the earnings pressure to a global tea glut, weakened export pricing, and currency effects stemming from a resurgent shilling.
Dividends Hold Steady or Moderate
Despite the financial strain, both companies opted to reward shareholders:
- •Kapchorua Tea declared a final dividend of KSh 25.00 per share, representing a 50% cut from the total payout of 50.00 in FY2024.
- •Williamson Tea maintained its final dividend at KSh 10.00 per share.
Both dividends are subject to shareholder approval at their respective virtual AGMs scheduled for 28 August 2025. The record date is set for 31 July 2025, with payments expected on 2 September 2025.
Bonus Share Issues Proposed
In a move to enhance shareholder value, the boards of both companies have proposed 1:1 bonus share issues:
- •Williamson Tea seeks to capitalize KSh 87.56 million from its revenue reserves.
- •Kapchorua Tea plans to capitalize KSh 39.12 million from its reserves.
Shareholders on record as of a future date to be announced will receive one fully paid share for every share held. The bonus shares will rank pari passu with existing shares.
