Limuru Tea Posts 11 Million Pre Tax Loss in HY 2020
Listed agricultural firm Limuru Tea has posted a decline in Loss before tax to Kes 11 million loss in the first six months of 2020, being lower as compared to the loss posted in a similar period last year.
In the first half of 2020, the Company produced 2,172 Tons of green leaf, which in turn was manufactured into 458 Tons of black tea. This was a 72% increase in Made Tea volumes compared to the first half of 2019.
Total revenues increased by 72% to Kes 50 million in the period compared to Kes 29 million realized in the same period of 2019. This increase in the first half of 2020 was driven by higher sales volumes which offset the adverse impact of declining market prices.
The Company posted a pre-tax loss of Kes 11 million in the first half of 2020 compared to a pre-tax loss of Kes 26 million in 2019. This reduction in loss is attributed to the Topline growth and effective cost management initiatives.
The company states that despite the depressed market prices which have continued to pose a risk to the business performance, the management of the firm will continue to focus on volume growth, cost management and other strategic initiatives to mitigate the market impact.
The company also notes that the Covid-19 pandemic remains a risk to the operations of the business.
The company has not declared a dividend for the period.