Kapchorua Tea Kenya, a listed firm engaged in the cultivation, manufacture and sale of tea, leapt from a loss-making territory to net earnings of Kes 25.7 Million at the close of its half-year ended 30th September 2021. This is compared to a net loss of Kes 12.7 Million over a similar period last year.
The firm’s pre-tax profit also hit Kes 36.6 Million compared to a pre-tax loss of Kes 16.9 Million at the end of 30th September 2020. Kapchorua Tea Turnover, however, declined to Kes 653.9 Million in H1, 2021 compared to Kes 669.7 Million at the end of September 2020.
According to the firm’s unaudited financials for the half-year period ended 30th September, its balance sheet size grew from Kes 1.8 Billion to Kes 2 Billion during the period under review. Profit arising from operating activities at Kapchorua Tea increased significantly from Kes 3.3 Million to Kes 21 Million at the end of September 2021.
Thus Kapchorua Tea Kenya’s profitability as measured by Earnings per Share rose to Kes 3.28 from a loss per share of Kes 1.62.
“The supply and demand equation remains in favour of demand with difficult trading conditions as a result. Kapchorua’s success to break into new markets is to be welcomed and this has resulted in increased demand and better prices. We are confident that the quality of tea made at Kapchorua will remain consistently good and trust that demand increases in line with this effort,” said a statement from the firm’s Board of Directors signed by G.K Masaki, the Company Secretary.
Shareholders’ wealth in Kapchorua Tea grew from Kes 1.3 Billion to Kes 1.4 Billion during the period under review.
The board of directors did not recommend payment of an interim dividend.
Read also; Kapchorua Tea Company Declares a Divided of Kes 10 Per Share For the FY 2020/1.
