Kakuzi Posts Profit in First Half of 2020 at Kes 272.8 Million
Agricultural listed firm Kakuzi Plc has posted a decline in profit before tax for the period to June 2020 to Kes 204.1 million compared to a profit of Kes 355.1 million for the same period last year.
This company attributes the decline, principally due to a financial provision write back in 2019.
During the first half of the year, avocado profits are on a par with 2019, macadamia profits are greater, and the tea operations made an operating loss of Kes 11.3 million compared to a loss of Kes 1.1 million in 2019.
The profit after tax for the period to 30 June 2020 was Kes 272.8 million compared to a profit of Kes 245.5 million for the same period last year. This is principally due to the release of deferred tax provision in view of the reduction of the Corporate tax rate to 25% from 30% by the Government.
Kakuzi’s main export season for Hass avocado began in June and is anticipated to end in early September. Similarly, the main macadamia crop has been harvested and processed and we are still on course for a second harvest in November.
Macadamia production is as per the company’s expectation and the management is looking to further increase the areas under production in the coming years.
Despite the very wet conditions experienced in the first half of the year Kakuzi’s arable operations have done well. Animal feed sales are as per expectations and, in line with the National food security strategy and the company continues to expand this important aspect to their business.
Blueberry production was negatively impacted by the wet and overcast conditions experienced in the first half of the year. Consequently, we the company downgraded its yield expectations for this year.