Orchards in 87pc net profit drop

Food processor Kenya Orchards has reported an 87 per cent net profit drop in the full-year ended December, mainly due to the absence of a significant tax credit the firm enjoyed the previous year.

It posted a net profit of Sh3.8 million in the period compared to the previous year’s Sh28.9 million when it enjoyed a tax credit of Sh24.6 million. The absence of the tax credit and an income duty of Sh1.5 million hit business and wiped out benefits of a six per cent growth of revenues to Sh64.6 million. It increased its borrowings by Sh2 million to Sh2.4 million during the period under review.

The firm has not paid dividends to ordinary shareholders for about a decade. It maintained this policy, but preference shareholders will get a total of Sh55,000.