Listed coffee grower Eaagads has reported a 29.2 percent full-year profit growth, riding on higher prices driven by stronger demand.
The company posted a net profit of Sh11.8 million for the year ended March 2025, up from Sh9.1 million a year earlier.
The profit followed a coffee price surge of 23 percent to Sh743 per kilogramme ($5.76), driven by higher demand which helped compensate for an 11 percent drop in production.
Coffee production during the year fell by 37 tonnes to 295 tonnes due to high temperatures. Quantity of coffee sold meanwhile rose 29 percent to 351 tonnes.
“Despite production challenges, the company capitalised on favourable pricing and sales growth to deliver significant profit expansion,” said Eaagads.
The price and sales increase resulted in a 45.4 percent growth in revenues to Sh277.2 million. Production costs rose at a faster pace, 56.7 percent, to Sh193.6 million.
Eaagads said it was banking on smart farming initiatives and cost cutting to sustain growth despite climatic headwinds.
“The outlook is promising, with robust flowering signaling potential recovery towards 290 tonnes (100tonnes early and 190tonnes late crop) for the year 2025-2026,” said Eaagads.
Kenya has two coffee harvests in a year. The late crop is harvested between September to December, and the early crop is harvested between March and August.
Coffee prices at the auction Nairobi Coffee Exchange (NCE) hit a historic high in December last year as international demand for quality crops rose.
Coffee industry in Kenya is largely driven by the international market as its local consumption has remained relatively low due to the predominant tea drinking culture.
However, in the recent past, the coffee drinking culture has taken shape, especially amongst the middle-income groups. Coffee houses are now conveniently located in shopping malls and town centres, further boosting local coffee consumption.
The company will not be paying out a dividend to its shareholders. It has not paid a dividend in more than five years.
