The embattled agricultural enterprise, Kakuzi PLC has posted a 48.6 per cent decline in net profit for the year ended December 2021.
This is down from Sh622 million it posted in a similar period the previous year. The firm says the drop is due to reduced earnings from avocado exports.
“The year saw the group post reduced earnings due to lower avocado production and prices. This was due to the avocado orchards entering their bi-annual offseason bearing cycle which results in a large crop of avocados in one year, followed by a small crop the following year,” chairman Nicholas Ng’ang’a said.
Its total sales for the year 2021 fell 8.6 per cent to Sh3.23 billion from Sh3.61 billion the previous year, its financial statement shows.
“We, however, experienced greater earnings from macadamia sales during the year as a result of increased yields from our young orchards,” Ng’ang’a notes.
Its exports, however, were hit in October 2020 into the first quarter of 2021 after a number of retailers, among them giants Tesco, Sainsbury’s, and Lidl boycotted its supplies in the European market.
This was after accusations of engaging in serious human rights violations in Kenya. It resumed exports in the second quarter of last year.
Despite the drop in profit, the board has recommended an increase in the dividend per share to Sh22.00 compared to Sh8 per share in 2020. This translates to a pay out of Sh431.2 million up from Sh352.8 million.