Agricultural listed firm Kakuzi Ltd has issued a profit warning for the full year that is ending December this year.
The company on Friday said that its earnings for the full year ended December this year are expected to be lower by at least 25 per cent compared to last year, based on management information as at the end of September 2012.
Kakuzi has blamed lower prices of its products in western markets, the strengthening of the Kenyan currency to the Euro, the withdrawal of a Sh109 million charge by Del Monte to Kakuzi and the completion of its subsidiary, Siret Tea Company resulting in only eight months of trading being consolidated this year.
“The Group currently forecasts that earnings for financial year 2012 may be at least 25 per cent lower than those of financial year 2011,” said the agricultural company in a statement.
According to the company’s financial results for the six months ended June this year, net income for continuing operations went up by 87.23 per cent to Sh71.24 million from Sh38.05 million over the same time period in 2011.
Profits from Siret Tea Company however dropped by 65.63 per cent to Sh32.14 million from Sh93.53 million and as a result its combined net income between January and June this year dropped by 21.43 per cent to Sh103.39 compared to Sh131.58 million as at June 2011.