No dividend for Kenyan Merali family as Sasini posts highest profit in seven years

The family of the late Kenyan tycoon Naushad Merali will not receive a final dividend from their investment in Sasini Tea this year, as the board of the Kenyan agricultural firm opted not to declare a final dividend despite reporting its highest profit in seven years.

According to figures obtained from Sasini’s recently published financial statement, its net profit in the fiscal year ended September 2022 was Ksh1.17 billion ($9.45 million), more than doubling the Ksh573.2 million ($4.63 million) posted in the previous comparable period.

Despite achieving a seven-year-high in profits, the board has decided not to distribute a final dividend to shareholders. Instead, investors will have to rely on the Ksh1 ($0.0081) per share interim dividend of Ksh228.05 million ($1.84 million) that was paid out in July of last year.

Sasini’s recent financial performance is a testament to the company’s resilience and ability to capitalize on favorable market conditions, as its sales revenue grew by 36.3 percent to Ksh7.34 billion ($59.3 million) compared to Ksh5.39 billion ($43.5 million) in the previous year, while the cost of sales rose to Ksh5.54 billion ($44.75 million) against the prior year’s Ksh4.49 billion ($36.2 million).

During the year, the company’s main revenue drivers of tea, coffee, and macadamia trading outperformed management’s expectations, and the company’s focus on automation, cost control, and consistently high-quality products contributed to higher earnings.

The family of Naushad Merali is the majority shareholder of Sasini, owning a 65.46-percent stake in the company worth over $25 million.

The family’s investment vehicles, Legend Investments Limited, Yana Towers Limited, and East Africa Batteries Limited, make up this portion of ownership, making it one of the most valuable portfolios on the Nairobi Securities Exchange.

The company’s focus on cost-cutting strategies and its emphasis on automation, are likely to drive its financial performance in the future. Barring any disruption, Sasini is poised to maintain its impressive financial performance in the coming years, solidifying its position as a leader in Kenya’s agricultural industry.