Kakuzi Plc, a Kenya-based agro-allied firm linked to media mogul John Kimani, has declared a double-digit decline in profit at the end of its 2021 fiscal year, with earnings falling below $3 million, owing to a significant drop in avocado sales during the year under review.
According to financial statements, the company’s profit at the end of 2021 fell by 48.6 percent from Ksh622.03 million ($5.43 million) at the end of 2020 to Ksh319.74 million ($2.8 million), owing to an 8.7-percent drop in revenue from Ksh3.61 billion ($31.5 million) to Ksh3.29 billion ($28.7 million).
The single-digit percentage decline in Kakuzi’s revenue during the period under review is the direct consequence of a decrease in Hass Avocado production, its main operation, combined with a fall in the commodity’s price on the global market due to oversupply in Peru and Columbia.
Aside from the decrease in sales, which had a significant impact on the company’s financial performance, Kakuzi’s profit was further hampered by a significant increase in costs, which increased from Ksh2.14 billion ($18.67 million) in 2020 to Ksh2.43 billion ($21.2 million).
However, the drop in avocado output was largely offset by higher revenues from macadamia sales during the year as a consequence of enhanced yields from its young plantations.
Kakuzi is a significant agro-allied company that trades on the Nairobi Stock Exchange. Avocados, blueberries, macadamia nuts, tea, cattle and commercial forestry are among the products grown, processed and sold by the corporation.
Kimani, a member of Kakuzi’s board of directors, holds a significant 32.3-percent interest in the company, totaling 6,330,699 shares.
Despite its poor financial performance at the end of 2021, the board suggested raising the dividend to KSh22 ($0.192) per share, up from Ksh18 ($0.157) per share in 2020. The dividend will be paid to shareholders on or around June 30.