Listed agricultural firm Kakuzi Group's net profit for the half-year ended June 2025 declined 15 percent following a dip in earnings from its avocado business.
Kakuzi posted a profit after tax of Sh295 million for the six months ended June 2025, down from Sh347 million in a similar period the previous year.
Revenues of the agricultural firm rose 28.6 percent to Sh1.5 billion, driven by sales of macadamia, avocado, blueberry, and tea. The cost of sales doubled to Sh882 million from Sh439 million in June 2024, resulting in a decline in profits.
A 58.4 percent drop in profits from the avocado business wiped gains in the macadamia that rose tenfold, pulling down the firm's after-tax earnings.
“The global avocado markets are well supplied. The half-year profit closed at Sh395 million compared to a half-year profit of Sh951 million posted in 2024, primarily because of a lower future crop valuation in 2025,” said Kakuzi.
The international avocado market has been well fed, resulting in lower prices compared to last year, when undersupply had driven up the prices.
Kakuzi said it had already exported a total of 165 containers (801,840 cartons) of avocados in the six months to June to European markets, which are also receiving fruit from Peru, South Africa, and Colombia. Peru's supplies in the international market have risen 30 percent compared to last year.
The Macadamia business reported a profit of Sh319 million during the review period, up from Sh32 million, riding on higher prices driven by demand. Kakuzi disclosed that half of its anticipated macadamia production was already committed for sale, underlining the demand.
“We have contracted 50 percent of the annual crop, some 450 tonnes at an average price of Sh1,548 per kilogramme ($12) compared to Sh1,161 per kilo ($9 per kilogramme) in the same period last year,” said Kakuzi.
Blueberry production contributed a half-year profit of Sh13 million, up from a loss position of Sh17 million for the same period last year, following higher production.
The firm produced 42,000 kilogrammes of blueberries in the six months to June, up from 8,400 kilogrammes in the same period last year.
The tea business dipped deeper into losses owing to lower prices. It recorded a half-year loss of Sh27.5 million compared to a loss of Sh3.5 million last year.
