(Alliance News) – Kenyan agriculture firm Kakuzi Ltd on Wednesday reported a first-half revenue hike, though rising costs hurt profit.
Sales in the six months to June 30 climbed 44% year-on-year to KES889.9 million, about GBP6.2 million, from KES619.5 million.
Pretax profit was 43% lower however, at KES204.1 million from KES355.1 million a year earlier.
Cost of sales soared to KES645.5 million from KES283.1 million and selling and distribution expenses more than doubled to KES130.3 million from KES64.2 million.
Kakuzi said: "The avocado market suffered a double blow during the period. Initially with the closure of the food service sector in northern Europe due to the pandemic lockdowns. This was followed by successive record arrivals of fruit from Peru which flooded the market and crashed the price. A recovery in the market price is currently noted as Peruvian volumes normalise.
"Macadamia production levels have been in line with expectations however, the markets have again suffered a significant downturn in the key export destinations for Kakuzi of the US and Japan. Despite worldwide production of nuts being lower, this is not enough to counter impact on sales prices and in some delayed orders."
Kakuzi noted that the tea market has seen "depressed prices" amid record production in Kenya.
Kakuzi shares were untraded at 92.50 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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