Eaagads posts Sh7.7m loss citing changes in asset value

Listed coffee grower Eaagads Limited has announced a net loss of Sh7.7 million for the half year period ended September, compared to an after-tax profit of Sh9.5 million it posted in the previous year.

The Ruiru-based agricultural firm attributed the performance to changes in fair value of its biological assets.

“This is principally due to the unrealised Sh30.2 million fair value loss on revaluation of biological assets. The fair value losses were attributed to an amendment to the International Accounting Standards (IAS),” the company said on Wednesday in a statement.

It remained upbeat despite the results, projecting it will weather the turbulence in international coffee prices to return to profitability.

“The company's coffee bushes are in good shape and management expects the Company's operations to remain profitable for the remainder of the financial year,” Eaagads said while announcing its directors do not recommend payment of an interim dividend for the period.

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