Sasini Plc recorded an after-tax profit of KES 188 million in the FY 2025 rebounding from a KES 562.9 million net loss in the previous year, supported by a stellar performance in the company’s coffee business, following exceptional price realizations, that offset headwinds in avocado and tea segments.
The Group’s revenue rose sharply by 22.5% to KES 8.44 billion from KES 6.89 billion in the previous year, while the cost of sales jumped 17.9% to KES 7.43 billion from KES 6.3 billion, attributable to macroeconomic challenges and higher logistics costs.
Fair value changes on biological assets surged 1,544% to KES 558.8 million driven by higher global coffee prices and lower interest rates. These substantial fair value gains were instrumental in the Group’s return to profitability, as the group’s profit before tax stood at KES 344 million, reversing a KES 674.4 million loss that was registered in FY 2024.
The coffee segment recorded the strongest performance, achieving record profits despite a decline in output in coffee estates due to unfavorable weather conditions. During the review period, coffee prices at the Nairobi Coffee Exchange averaged USD 6.19 per kg compared to USD 4.65 per kg in 2024.
The tea unit faced a prolonged and severe market downturn primarily due to global oversupply from major tea producers. Despite a decline in revenue, the segment cushioned losses through continued use of mechanization and automation, renewable energy contribution, and interest income from cash reserves.
Geopolitical factors including the Middle East conflicts and disruption of shipping activities along the Suez Canal by Yemen’s Houthi rebels affected the Avocado unit. Meanwhile, average prices for exported processed macadamia nuts rose to $11.33 per kg from $7.78 per kg in FY 2024.
Sasini’s strategic developments
Sasini Group successfully rolled out the Sage X3 ERP, marking a major milestone in its digital transformation. The new ERP is set to improve financial reporting and operational management. Additionally, the Group intends to dispose a KES 3.7 billion coffee division to boost shareholder value. During the review period, total shareholders’ equity rose marginally by 0.75% to KES 21.4 billion from KES 21.3 billion in a prior year.
Looking forward, the agricultural firm remains optimistic, expecting a recovery in the tea segment.
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