Kapchorua Tea Kenya Plc has recorded exceptional financial performance for the 6 months period ending on September 30th 2025, demonstrating an impressive turnaround in profitability. The agricultural firm reported a net profit of KES 95 million, a staggering increase from KES 18 million recorded during the same timeframe in the previous year. This remarkable profit was underpinned by a turnaround in profit from operations before tax which amounted to KES 75.2 million from a KES 5.2 million loss in the prior year. Augmenting this was growth in fair value of biological assets to KES 39.4 million compared to KES 7.9 million.
Kapchorua’s financial upswing is attributed to a well-executed strategy employed by the company. Primarily, Kapchorua’s unwavering commitment to producing high-quality tea has fortified its brand reputation and, in turn, bolstered its demand both locally and globally. Concurrently, the company’s focus on cost-management and operational efficiency has yielded substantial reductions in expenditure, allowing a greater portion of revenue to translate into net earnings.
Net pofit for the period under review grew 5.2X despite turnover declining by 24.2% to KES 829.9 million, highlighting that the profit growth was driven more by margin improvement and cost control.
The company’s direct benefit to shareholders is clear, with the company’s Earnings Per Share (EPS) rising significantly to KES 12.17, up from KES 2.33 in the prior year.
Kapchorua’s Outlook and Prospects
Despite the strong recent performance, the future outlook for Kapchorua Tea remains cautiously uncertain. The company operates within a broader Kenyan tea industry that continues to produce tea at a volume which extends to the global market, which creates a persistent oversupply that can depress prices. Compounding this issue, is the persistent rise in external costs which may threaten the company’s profitability in the future.
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