Coffee producer, Eaagads has reported a full-year net profit of KSh1.75 million for the period that ended on 31st March 2021 up from a loss of KSh66.7 million in March 2020. The company attributes the improved performance to higher yields due to favorable weather and higher coffee prices. Eaagads produced 233 tonnes of coffee in the financial year that ended in March, a 104% increase from 114 tonnes produced at the end of March 2020.
The agricultural firm managed to sell 233 tonnes of coffee at an average price of $5.52 per kilo compared to 127 tonnes of coffee sold at an average price of $3.75 per kilo in the previous financial year.
Eaagads’ revenue from the sale of coffee surged to KSh139.7 million in March 2021, up from KSh48.6 million in March 2020. Similarly, the cost of production, which is made of Coffee upkeep costs, picking costs and wet processing costs increased to KSh85.5 million from KSh74 million in the previous year. According to Eaagads’ financial report, crop commission charges rose by KSh2.5 million in line with increased sales.
Total assets grew by 17.7% to KSh1.1 billion as of 31st March 2021 from KSh948.6 million as of 31st March 2020. Eaagads realized a revaluation gain of KSh176 million after it revalued its 44 hectares of freehold land and its plant and machinery.
The coffee company expects to harvest 214 tonnes of coffee in the financial year 2021/2022. “Production for 2021-22 is expected to be lower than demand mainly due to low production expectation in Brazil. Looking forward, the prices are likely to remain attractive in 2021-22 coffee year as the world looks at depressed production. Eaagads coffee continues to attract a premium in the market due to its quality, although it is still impacted by the International coffee prices,” Eaagads said in its financial report.
The company’s board do not recommend a dividend for the year that ended on 31st March 2021.
