Sasini Plc a listed firm in the Nairobi Securities Exchange, has reported a notable rise in the six months period ended 31st March 2021. The group recorded a profit before tax of Kes 191.86 Million an improvement from the loss of Kes 10.14 million that was recorded during the same period last year.
Sasini Plc attributed the good performance of the company to improved coffee prices, good weather conditions and cost containment measures within the group. The company said Coffee and tea production volumes were within their expectations.
Consequently, the Group recorded a Kes 135.28 million increase in profits after tax for the six-month period compared to the same period in the previous year.
The company’s half-year net profit jumped to Kes 122 Million from a Kes 13 million loss in the first half of 2020. Sasini attributes the improved performance to the mechanization of the tea harvesting process which led to significant cost reduction for the company. The tea producer cut its workforce by 1,364 staff in 2020 after acquiring the tea harvesting machines.
However, a decline in tea prices and low demand for tea and coffee led to a 2% dip in revenue to Kes 2.024 billion at the end of March 2021, from Kes 2.070 billion in March 2020.
Sasini Plc Outlook
Sasini Plc has expressed optimism in the performance of the company saying the remaining six months of the year look bright with the onset in April 2021 of the avocado season and macadamia nuts shipments that are expected to contribute to the next six months results.
Additionally, the company said the good weather conditions prevailing support both the tea production volumes and the coffee early crop to achieve expected to deliver good financial results at the end of the year.
The board of directors recommend the payment of an interim dividend of 50% (Kes.0.50) per share for the year ending 30th September 2021.