Agricultural firm Williamson Tea Kenya’s share price has rallied to a new 52-week high of Sh269 ahead of book closure for the payment of a Sh30 per share dividend on August 23.
The new share price surpasses the stock’s previous 52-week high of Sh261. On Tuesday, Williamson Tea share price rose from Sh256 with 5,000 units traded on the day.
The agricultural firm is expected to pay the first and final dividend on September 4.
The dividend is an improvement from the Sh20 per share paid out in its financial year ended in March 2022.
Williamson posted a 4.5 percent growth in profitability for the year ended in March 2023 with net earnings rising to Sh564.3 million.
The performance came against an 11 percent drop in crop production to 15.1 million kilogrammes of tea while the volumes of tea sold decreased from 16.2 million kilogrammes to 16 million kilogrammes.
The grower marked some respite from an increase in average tea prices which rose from Sh216 per kilogramme to Sh257.
Ngong Tea Holdings Limited, an entity registered in London is expected to be the largest beneficiary from the dividend payout based on its 51.4 percent shareholding in Williamson, represented by 9,012,328 shares.
Other top shareholders in the firm include Baloobhai and Amarjeet Patel with a 4.33 percent stake in the firm, Upstream Investments Limited and CTC Global Investment Limited.
Despite the company’s improved performance over the 12-month cycle, management at the firm warned of headwinds including the increased cost of production from inflation alongside increased costs including electricity and security.
“There are reasons to be concerned about the rule of law and the gradual erosion of it. Increased theft of green leaves and mindless vandalism and destruction of assets are on the rise. Employing more security to protect assets and people adds considerably to our costs,” Williamson Chairman Ezekiel Wanjama observed in the company’s 2023 Annual Report.
