Sasini posts 149pc increase in net profit in 2022

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  • Sasini PLC has posted 149 percent increase in net profit for the year ended 30th September 2022 to hit $8.8 million (Sh1.1 billion) compared to $4.6 million (Sh573 million) posted in the same period previous year.
  • The profits are attributed to most of the business units performing exceptionally well as the main segments of Tea, Coffee and Macadamia trading surpassed expectations. 
  • The cost of sales, however,  increased to $44 million (Sh5.54 billion) against the prior year’s $36.2  million (Sh4.49 billion) a corresponding increase of 23.3 percent. 

Sasini PLC has posted a 149 percent increase in net profit for the year ended 30th September 2022 to hit $8.8 million (Sh1.1 billion) compared to $4.6 million (Sh573 million) posted in the same period previous year. 

The profits are attributed to most of the business units performing exceptionally well as the main segments of Tea, Coffee and Macadamia trading surpassed expectations. 

The year under review recorded a turnover of $59 million (Sh7.34 billion) compared to $43 million (Sh5.39 billion) in the previous year representing an increase of 36.3 percent in revenue. 

The cost of sales however, increased to $44 million (Sh5.54 billion) against the prior year’s $63.2 million (Sh4.49 billion) – a corresponding increase of 23.3 percent. 

“The Group’s performance showed resilience and improved significantly compared to the prior years. The company endured a difficult time during the year due to a lot of uncertainties in the market and other extraneous factors that impact the business environment. We managed to grow revenue at a faster pace than costs of sales which is exceptional towards profit generation,” the firm stated. 

According to the firm, the financial year continued to experience the remnant effects of the COVID-19 pandemic, especially in the first half of the year before the Government announced the suspension of its Coronavirus containment measures as infections and fatalities dipped and vaccinations took root. 

Other challenges during the year included the prolonged adverse weather conditions experienced in the country, the increased cost of doing business exacerbated by the war in Ukraine.

Europe’s reduced purchasing power in the local market and a rise in inflation (rising to a 62-month high of 8.3 percent in July) due to the higher cost of imported goods, fuel and raw materials also impacted the performance of the business. 

The gain from changes in the value of biological assets was $581,000 (Sh72.03 million) prior year loss of $1 million (Sh129.78 million).

“The measures devised during the year by the board and management effectively produced results manifested in high-quality products and consistent quality that attracted higher sales prices resulting in increased turnover to a record high compared to previous years,” the firm explained. 

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Outlook

Going forward the firm plans to strongly base all its operations on being sustainable in alignment with global objectives.   

“As we prepare to craft a new strategic route to enhance our current achievements, we will continue focusing on aspects of business growth that complement our existing skill base but will also look to innovation as well as acquiring new skills that can challenge us to deliver in areas and business units we do not have today,” the firm explains. 

Although the effects of the pandemic have eased, the firm says geopolitical risks, climatic changes, economic downturns, rising inflation, and other challenges in the country are still a threat to doing business in Kenya. 

“Nonetheless, our liquidity position is stable and firm and is well poised to support the company in driving forward and achieving profitable growth. We, however, continue to exercise prudent business decisions to mitigate these negative effects and aim to continue delivering the desired results in the next financial year and subsequently,” the firm noted.

In view of the exceptionally strong performance during the year, the management will continue to explore new lines and ideas in a bid to fit in with the changing business environment to expand and enhance shareholder value.

Emphasis on quality coupled with quantity based on a sustainable model remains top on the agenda for delivery.

Dividend

The company announced a 100 percent interim dividend increase amounting to $1.8 million (Sh228.05 million) (Sh1.00 per share; 2021 – Sh 0.50 per share) was declared and paid on 14 July 2022. 

The Directors do not recommend the payment of a final dividend (2021 – Sh0.50 per share).

Sasini PLC is a publicly quoted company listed on the Nairobi Securities Exchange with over 6,000 shareholders, majority of whom are Kenyans.

The principal activities of this company include the growing and processing of tea, coffee, avocado, macadamia nuts, dairy operations and value addition of the related products for local retail and export markets, including tea warehousing facilities in the port city of Mombasa.

All of the company’s production activities are certified under various internationally recognized certification standards which include: ISO 22000:2005, Rainforest Alliance, C.A.F.E Practice, Fairtrade, GlobalG.A.P., GRASP, FSSC and IFS to assure our buyers of prudent employment of food safety handling techniques, quality products and traceability at all levels of production.

 

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