Limuru Tea H1 profit down 72pc over low output

Kenya’s Limuru Tea Company after-tax profit plunged 72 per cent for the first six months of 2011, as poor rainfall hurt production output.

The company posted Sh6.45million after-tax profit, down from Sh23.14m made in the same period last year. Tea production during the period was at 237 tonnes, a 50 per cent fall from last year’s volumes.

The company was, however, cautiously optimistic of better performance in the second half of the year.

“The second half of the year has not started well in terms of crop volume due to poor rainfall. However, if the fourth quarter crop's forecast is achieved; and tea prices remain favourable, the company's profitability should improve in the 'second half of the year,” a statement emailed from the Nairobi Stock Exchange noted. (Download: Limuru Tea Company Results)

Earnings per share went down to Sh5.37 from Sh19.28, and the company’s board did not recommend payment of interim dividend.