Listed agricultural firm Limuru Tea said it would resume paying dividends on Friday with a Sh1 per share payout as it bounced back to profit position in 2018 after a loss-making streak.
The Nairobi Securities Exchange (NSE) listed company posted a net profit of Sh2.54 million last year, an improved performance compared to an after-tax loss of Sh22.13 million posted in 2017.
The firm attributed the performance to a rise in sales volumes and cost savings.
Limuru Tea reported a total revenue rise to Sh109 million representing a 35 percent rise from Sh80 million in 2017.
“The improved profitability resulted from the growth in turnover and the continued cost savings,” said the firm’s chairman Richard Korir in a regulatory filing on Friday.
Last year, the agricultural company produced 3,081,340 kilos of green leaf, a 51 percent increase due to average weather in the East of Rift Valley where the firm is located.
This in turn made 678,961 kilos of black tea.
Mr Korir said the firm is cautiously optimistic of a better performance this year on the back of a drop in tea auction prices and poor weather.
“The first quarter of the year 2019 has witnessed a drop in tea auction prices. The volumes may be impacted by prevailing weather conditions,” he said.