Kakuzi Plc, a leading agricultural cultivation and manufacturing firm partly owned by Kenyan media mogul John Kimani, demonstrated resilience in its financial performance in 2023, with revenue exceeding the $40-million mark despite economic headwinds.
Amid a challenging operating environment characterized by falling demand for macadamia in key markets such as Europe and the United States, Kakuzi saw its revenue surge by 21.8 percent in 2023, rising from Ksh4.43 billion ($33.65 million) in 2022 to Ksh5.4 billion ($41 million) in 2023. This increase was driven by the robust performance of its avocado business, supported by enhanced production and operational efficiencies.
While the demand for macadamia faced significant challenges, Kakuzi’s avocado business shone brightly. Increased field production, coupled with improvements in pack house operations and related handling efficiencies, propelled avocado exports to surpass the three million carton mark for the first time.
Kakuzi’s earnings tumble as Macadamia sales falter
Despite the substantial increase in revenue, Kakuzi experienced a notable decline of 46.4 percent in its profit for 2023. Profit fell from, Ksh845.8 million ($6.43 million) in 2022 to Ksh453.5 million ($3.44 million) in 2023, attributed to higher operating costs and reduced earnings from the macadamia segment due to decreased global demand.
Kakuzi’s macadamia business recorded a net loss of Ksh241.8 million ($1.84 million) in 2023, a stark contrast to the net profit of Ksh439.6 million ($3.34 million) reported in the previous year. The company cited a significant increase in direct production costs, reaching Ksh3.56 billion ($27 million) in 2023 compared to Ksh2.42 billion ($18.4 million) in the preceding year, as a key factor contributing to the downturn in profitability.
Kakuzi maintains strong position in agribusines, John Kimani to see sizeable dividend
Kakuzi Plc, a leading Kenyan agribusiness firm, projects confidence in its future as a going concern. The company boasts a diversified product portfolio encompassing avocados, blueberries, macadamia nuts, tea, cattle, and commercial forestry.
The board of directors recommended a dividend of Ksh24 ($0.182) per share, translating to a total payout of Ksh470.4 million (about $3.57 million). Shareholders, including Kimani, will benefit from this distribution on the record date of June 15.
Kimani, a significant shareholder with a 33.3-percent stake in Kakuzi, is positioned to receive a substantial portion of the dividend payout. This further strengthens his position as one of the wealthiest investors on the Nairobi Securities Exchange and a prominent figure in Kenya’s business environment.
