Grower Sasini Plc has returned to profitability booking a Ksh.12.6 million profit for the year running to the end of September 2020.
This to reverse a Ksh.337.7 million loss booked in 2019 on the back of improved cost containment.
Sasini’s turnover rose by 48 per cent to Ksh.4.1 billion from Ksh.2.8 billion a year earlier beating a 41 per cent rise in costs.
The company’s cost of sales grew at a slower pace settling at Ksh.3.3 billion against Ksh.2.4 billion in 2019 as Sasini benefited from mechanization as a cost cutting initiative.
During the year, the firm overcame operational challenges occasioned by the COVID-19 pandemic and weather related disruptions to book greater revenues.
This even as Sasini’s coffee business started the year out with reduced production while tea sold realized lower prices at auction.
Sasini’s macadamia business meanwhile sold to a halt due to market closures but the slack was offset by its avocado trade which saw a combination of a solid harvest and improved demand.
The mechanization of tea harvesting meanwhile took out 13 per cent of administration costs as the performance of the firm rallied in the second half of the year.
“We continue to see great results from the mechanization in our tea operations which will bode well for us going forward, and our focus on cost containment remains as strong as ever,” the company said on Friday.
“We have continued our investments in our new avocado and macadamia business units to help us reduce our reliance on over traditional tea and coffee businesses.”
From the improved earnings, Sasini’s earnings per share returned to positive territory at seven cents from a negative Ksh.1.39 in 2019.Video Of The Day: | EVENTS 2020 | Raila Odinga’s reflections on 2020 and expectations for 2021 228 views
