NAIROBI, KENYA, MAY 18 — Agricultural listed firm-Sasini has reported a 9.6 per cent rise in its net profit for the six months ended March 31, 2018, helped by high commodity prices in the market.
The company has reported a net profit of Ksh84.7 million, for the period under review, up from Ksh77.3 million realised in a similar period in the previous financial year.
The Nairobi Securities Exchange listed company recorded an increase in total revenues from its operations which shot to Ksh1.50 billion from Ksh1.45 billion.
Profit from operating activities grew 51.2 per cent to Ksh163.1 million from Ksh107.9 million the previous year.
“The increase in profitability was due to good weather conditions and higher price realizations especially in the tea sector despite the challenges experienced. The labour unrest adversely affected our production, sales volumes and quality of the tea,” Group managing director Stephen Githiga said in a statement on Friday.
According to the company, its coffee division and avocado also experienced lower production due to weather changes which caused delay in harvesting, hence lower sales.
The firm recorded a net loss from changes in the valuation of biological assets of Ksh114.1 million (prior year loss Ksh44 million), attributed to lower prices and volumes. This is however expected to reverse in the second half.
The company expects production of both tea and coffee to improve in the second half of the year due to improved weather.
However, the gains in production may be depressed by lower expected prices for both commodities as supply may exceed demand in the market, Githiga cautioned.
“The strengthening of the Kenyan shilling against the US Dollar is also expected to depress our earnings,” he added “Inspite of these challenges, our diversification strategies are on course as both our avocado and macadamia projects are expected to be operational before the end of financial year.”
The board has recommended a payment of an interim dividend of Ksh0.5 (50 per cent) per share for the period ended March 31, 3018, according to Chairman James McFie.