Kakuzi has posted 18.6 percent decline in earnings to Sh481 million in after-tax profit for the year ended December, 2018.
Williamson Tea Kenya, has issued a profit warning stating that its earnings for financial year ending March 31 2019 could be at least 25 percent lower than the previous year.
Agricultural firm Kakuzi #ticker:KUKZ has posted 18.6 percent decline in earnings to Sh481 million in after-tax profit for the year ended December, 2018.
The drop follows reduced avocado prices owing to oversupply in the European markets.
Kakuzi’s depressed earnings come in the wake of increased revenue from sales, which tipped Sh3.15 billion from Sh2.82 billion.
The company, which also grows macadamia, tea and trees in addition to livestock farming, last year decided to increase its focus on growing avocados, shifting from pineapples. The firm mainly targets the export market.
Avocado prices
“… The lower profits are as a result of lower avocado prices achieved due to a heavily over supplied market in Europe. Macadamia and forestry profits improved over the previous year as a result of increased production from our orchards and a rise in the demand for wood products,” said Kakuzi chairman G H Mclean.
Another player in the agri-sector, Williamson Tea Kenya #ticker:WTK, has issued a profit warning stating that its earnings for financial year ending March 31 2019 could be at least 25 percent lower than the previous year.
The firm blamed the decline on uneven and unpredictable weather patterns, high labour costs and lower prices fetched by tea.
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