Listed coffee producer Eaagads #ticker:EGAD returned to profitability in the year ended March 2019 after nearly trebling its coffee volumes amid higher export prices for the commodity.
The firm made a net profit of Sh2.65 million in the period, compared to a net loss of Sh62.5 million in the year ending March 2018, with revenue climbing by 114.6 percent from Sh83.7 million to Sh179.6 million.
The firm produced 419 tonnes of coffee last year, up from 154 tonnes in the 2017/18 when drought hit the agriculture sector, and sold 416 tonnes compared to 252 previously.
“The increase was mainly attributed to favourable weather coupled by good agronomical practices … the average price realised during the year increased to $3.37 (Sh350) per kilogramme from $3.32 (Sh345) in the prior year,” said Eaagads in a statement.
As a result of the larger crop, the cost of production rose by Sh23.5 million to Sh136.3 million.
Picking and wet processing costs went up by Sh28 million, the firm said.
“Crop commission charges increased by Sh8.6 million, attributable to a crop sale commission of 2.75 percent levied, mainly due to timing of crop sales. Farm management fees remained at $7.5 (Sh780) per hectare,” Eaagads said.