NAIROBI, KENYA, MAR 27— Food processor-Kenya Orchards Limited has recorded a 52.4 per cent profit after tax for the year ended December 2017, despite high distribution costs amid increased administrative expenses.
The Nairobi Securities Exchange listed firm posted a net profit of Ksh5.73 million up from Ksh3.76 million the previous year, the firm has reported in its financial statement.
The company’s turnover during the period closed at Ksh73.69 million, a 14.1 per cent jump from Ksh64.59 million a year earlier, buoyed by increased sales.
This is despite an increase in the cost of selling and distribution expenses which rose to Ksh932,903 up from Ksh110,827 in 2016.
Gross profit closed at Ksh13.33 million up from Ksh7.98 million last the previous year, a 67 per cent jump.
The profit comes despite a contracted market in the country occasioned by last year’s prolonged general elections, which affected a huge number of listed firms.
The principal activity of the company is that of selling processed fruits, vegetables and other food products.
“The directors recommend the payment of a dividend of Ksh55,000 to preference shareholders( 2016:55,000). The directors do not recommend the declaration of a dividend to ordinary shareholders,” the firm said in its financial statement.
Last year, the firm fell into the wrong books of the Capital Markets Authority after it failed to notify the regulator on its leadership changes on time.
The company breached regulatory guidelines after it hired a new chief executive in July, but failed to promptly communicate to the CMA.
During the change of guard, Vipul Patel took over from Sudhir Damodar Vaidya as CEO.
The firm announced the changes three weeks later prompting an investigation by CMA.
The law requires companies to publish a timely notice in the newspapers and write to the CMA and the Nairobi Securities Exchange notifying them of the changes.
Breaching the Capital Markets Act attracts penalties of up to Ksh10 million.
