Table of Contents
Key Points
- Kakuzi’s first-half 2024 profit surged 195% to $2.7 million, driven by strong avocado and macadamia demand.
- Revenue rose 35% to $9.2 million, supported by market recovery in avocado and macadamia exports.
- Avocado revenue increased 42% to $7.38 million, while the macadamia unit returned to profitability with a $0.25 million profit.
Kakuzi Plc, an agricultural cultivation and manufacturing firm partly owned by Kenyan billionaire John Kimani, nearly tripled its first-half 2024 profits to $2.7 million, fueled by strong demand for avocado and macadamia products.
The company’s profit for the first half of 2024 surged by 195 percent to Ksh347.5 million ($2.7 million), nearly tripling from Ksh117.5 million ($0.91 million) in the same period last year, according to its recently published financial statement.
The earnings growth was supported by a 35 percent increase in total turnover, which reached Ksh1.175 billion ($9.2 million), up from Ksh873 million ($6.8 million) in the first half of 2023. The impressive performance was largely attributed to a recovery in the market for Kakuzi’s Macadamia Nuts and Avocado superfoods exports.
Kakuzi’s avocado revenue saw a remarkable 42 percent increase, closing the half-year trading period at Ksh951 million ($7.38 million), up from Ksh670 million ($5.2 million) in the same period last year. This growth was fueled by reduced supply from traditional high-volume suppliers in South America, such as Peru and Mexico.
Macadamia unit profits amid recovery
The firm’s macadamia unit also returned to profitability, with a Ksh32 million ($0.25 million) profit, a sharp reversal from a Ksh329 million ($2.55 million) loss in the same period last year. The demand for Kakuzi’s sustainable wood products boosted divisional profits by 54 percent to Ksh71 million ($0.55 million), compared to Ksh46 million ($0.36 million) in the prior year.
Kakuzi Managing Director Chris Flowers attributed the strong financial results to a buoyant international avocado market and the recovery of macadamia demand to pre-pandemic levels. He noted that global supply constraints had created favorable conditions for the company’s avocado business, while macadamia prices, although improving, still lag behind 2021 levels.
“In line with our expectations, the global macadamia industry has taken a positive turn, with all markets recording a return to near normal (pre-COVID pandemic) demand levels,” Flowers said. “Global stock levels from 2023 have largely been consumed, and 2024’s production, which is currently being harvested and processed, is well-committed to the market.”
Kakuzi’s diversified agricultural portfolio
Kakuzi, recognized for its high-quality agricultural products, including avocados, macadamia nuts, and passion fruits, also engages in tea processing, cattle farming, and commercial forestry.
The firm’s financial performance in the first half of 2024 follows a resilient 2023, where revenue exceeded the $40 million mark, rising to Ksh5.4 billion ($41 million) from Ksh4.43 billion ($33.65 million) in 2022.
As one of the leading investors on the Nairobi Securities Exchange, John Kimani holds a significant 34.54 percent stake in Kakuzi, further solidifying his position as a prominent figure in Kenya’s agricultural and investment sectors. Beyond Kakuzi, Kimani also has substantial stakes in Centum Investments and Nation Media Group.
