Two NSE-listed sister tea firms issue profit warnings
Drop in earnings attributed to depressed market prices following an over supply of tea against demand as well as a strong Kenya shilling against the US Dollar
Two Nairobi Securities Exchange (NSE)-listed sister tea companies have issued profit warning, saying their profit after tax for the financial year ended 31st March 2025 are projected to decline by more than 25 per cent of the net earnings reported in the financial year ending 31st March 2024
Williamson Tea Kenya Plc and Kapchorua Tea Kenya Plc both said the drop in profits is largely attributed to depressed market prices following an over supply of tea against demand as well as a strong Kenya shilling against the US Dollar.
“The Board and management continue to address strategic cost, operational efficiency and product quality initiatives to deliver improved results,” the separate notices by G.K Masaki, their Company Secretary said.
Both companies are majority owned by Ngong Tea Holdings Limited, which has a 51.5 per cent stake in Williamson Tea Kenya Plc and 63.5 per cent in Kapchorua Tea Kenya Plc.
In July last year, the two companies had pushed for the destruction of unsold tea held by the Kenya Tea Development Authority (KTDA), saying it was saturating the market and thus impacting on prices.
At the time, KTDA held an estimated two million kilogrammes of tea at the Mombasa auction.
