Kapchorua Tea Kenya has announced it will pay a first and final dividend of Kes 10 per share despite posting a 63% decline in profits for the period ended 31st March 2021.
The Nairobi securities exchange-listed company posted a profit of Kes 7.07 million as compared to Kes 19.44 million that was recorded during a similar period in 2020.
According to the tea company, the global COVID -19 pandemic coupled with weakening economies and an over-supply of Kenya tea coinciding with weak demand from certain areas all contributed to the decline in profits.
The over-supply of Kenya tea resulted in very depressed prices throughout the year, however, the company reported that they outperformed market expectations and achieved success, often outselling competitors and reaching new markets.
The firms’ revenue increased slightly to kes 1.45 billion during the period ended 31st March 2021 as compared to Kes 1.13 billion that was recorded during the same period in 2020. Total assets in the tea company grew by 7% to Kes 2.08 billion during the period ended 31st March 2021 as compared to kes 1.94 billion that was recorded during a similar period in 2020.
Kapchorua Tea Company has expressed doubt in the 2021 financial year saying the supply of tea remains very high with the prices being relatively low
” The future looks very difficult, with major buyers in and out of the market and with the availability of tea remaining very high quantities may be purchased at leisure”. Kapchorua Tea Company in their financial results.
Read also; Williamson Tea Issues Profit Warning
