Coffee grower Eaagads Limited, has reported Ksh 18.4 million loss for its full-year results ended in March 2020.
The coffee grower attributed the loss to unfavorable weather and poor crop production during the period.
“The decrease was mainly attributed to the severe drought experienced in the first half of the year which affected the formation of the late crop for the production year 2019/2020. Due to the low yield, the company only achieved sales of 127 tons of coffee compared with 416 tons last year,” the company said on Monday.
Its revenues dropped from Kshs179.6 million last year to Kshs48.6 million in the current financial year. Consequently, the company reported a loss before tax of Kshs 77 million compared to a profit before tax of Kshs. 1.7 million in the previous year.
Going forward, the company expects a significantly lower harvest, currently estimated at 235 tons from an earlier projection of 330 tons.
This is due to the high rainfall received in January to April 2020 has resulted in intermittent flowering of the late crop, a condition necessary for good flowering.
In addition, its revenues will be impacted owing to the ‘unprecedented low levels’ of international coffee market prices.
“Eaagads coffee continues to attract a premium in the market due to its quality, although it is still impacted by the International coffee prices. The company continues to source for more direct sales to achieve better pricing.”
Eaagads Estate is a coffee farm owned by Eagaads Company Limited, listed on the Nairobi Securities Exchange (NSE). It is managed by Kofinaf Co. Ltd [formerly Socfinaf Co. Ltd] and is located in Thika Division of Thika District; Kiambu County.
The board of directors did not recommend payment of a dividend for the year ended 31 March 2020.