Williamson Tea and Kapchorua Tea have today issued profit warning statement saying their earnings for the financial period ending 31st March are expected to be lower by at-least 25% compared to the previous year ended 31st March 2016.
The two listed sister companies said the fall in earnings has been impacted by the “unpredictable and uneven weather patterns but more so the primary cause is the inability to control aggressive and rising labour costs.”
“Wih high employee numbers, our anticipated wage and other benefits increases dating back to 2014 require huge financial provisions which if repeated would be unsustainable. With Union and Collective Bargaining Agreement Disputes residing in Court and therefore unknown, the future remains uncertain and challenging. The Board and Management are taking appropriate measures on cost cutting wherever possible.” The two companies announced.
