Kakuzi's gross margins grew substantially, indicating that it benefitted from lower costs in its operations.
Its margins during the period increased to 46 percent from 28.8 percent a year earlier. The company did not give a breakdown of its costs but salaries and the running of its farms constitute the bulk of its expenses.
Kakuzi managing director Chris Flowers said avocado prices were low in the review period, adding that the company gained from selling more fruits.
“The prices for early season avocados were very poor, but they have slowly recovered as the months progressed. Having fruit in the market for as many months of the year as possible has helped shield us from the poor early season market,” he said in a statement on Thursday.
“In addition, entry into China is vital for Kenya. Market prices may be similar to European levels, but such a high volume additional market gives us a choice and diversified sales options." Kakuzi has been seeking to diversify away from avocado and macadamia, which currently generate most of its sales.
