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Company Data
Kakuzi Ltd.
Par Value:                  5/-
Closing Price:           406.00
Total Shares Issued:          19600000.00
Market Capitalization:        7,957,600,000
EPS:             16.34
PE:                 24.847

Kakuzi reports Half year Results through 30th June 2022 versus through 30th June 2021
HY 22 Sales 1.026492b versus 0.888949b
HY 22 Profit before fair value gain in non-current biological assets and income tax 471.842m versus 256.094m
HY 22 Fair value gain in non-current biological assets 22.826m versus 20.569m
HY 22 Profit before income tax 494.668m versus 276.663m
HY 22 Profit for the period 341.27m versus 194.638m
HY 22 EPS 17.41 versus 9.93 +75.32%
HY 22 Cash and cash equivalents at the end of the period 840.966m versus 1.198311b


· Strong bottom line growth. Pretax profit up 60% to Kshs 494.7 million
· Anticipating higher avocado exports, this ‘ON’ year cropping cycle
· Diversification strategy gains steam
· Domestic sales for macadamia and blueberries as part of revenue stream diversification
stepped up
· All set for avocado exports to China


They made more money HY 22 than FY 21

Kakuzi reports FY Earnings through 31st December 2021
versus 31st December 2020
FY Sales 3.296414b versus 3.608941b
FY Profit before fair value gain 333.435m versus 789.719m
FY Fair Value gain in non-current biological Assets 138.121m versus 57.813m
FY Profit before Income Tax 471.556m versus 847.532m
FY Profit after Tax 319.736m versus 622.034m
FY EPS 16.31 versus 31.74
FY Dividend 22.00 versus 18.00
Cash and cash equivalents at the end of the year 1,656,219


The year saw the group post reduced earnings due to lower avocado production and prices.
This was due to the avocado orchards entering their bi-annual offseason bearing cycle which results in a large crop of avocados in one year, followed by a small crop the following year.
We, however, experienced greater earnings from macadamia sales during the year as a result of increased yields from our young orchards.
Product diversification and value addition remain key investment areas to enhanced stakeholder value and our continued commitment to these is critical for the long term.
Your Board recommends an increase in the dividend per share to Shs 22.00 compared to Shs 18.00 per share in 2020.

Kakuzi Ltd [@Kakuzi_Plc] FY 2021 results: @MwangoCapital

Sales down 8.6% to KES 3.296B
EPS down 48.6% to KES 16.31
Reduced earnings are due to lower avocado production and prices
DPS increases by 22.2% to KES 22 per share
DPR of 135%


very well diversified, well positioned in a space that is is expected to remain dynamic notwithstanding major headwinds like input costs.
Buy on dips.
Kakuzi reports Half Year Earnings through 30th June 2021 versus comparative figures for the previous year
HY Sales 888.949m versus 889.909m
Profit before fair value gain in non current biological assets and income Tax 256.094m versus 186.022m
Fair value gain in non current biological assets 20.569m versus 18.095m
HY Profit before income Tax 276.663m versus 204.117m
HY Income Tax [expense] credit [82.025m] versus 68.670m
HY Profit after Tax 194.638m versus 272.787m
HY EPS 9.93 versus 13.92 -28.66%
Cash and Cash Equivalents 1.198311b versus 1.013062b


harvesting of our flagship products avocado and macadamia began in earnest in June.
preliminary production data at this stage indicates that avocado crop output to market is significantly lower than in 2020
COVID 19 pandemic will continue to disrupt the potential of our markets to absorb our produce to a certain degree for the rest of this year

@Kakuzi_Plc Unaudited Results for the Six Months Ended 30th June 2021. @tradingroomke


HY Income Tax [expense] credit [82.025m] versus 68.670m was material
Its a cheap share and one to hold for the medium term.
Kakuzi PLC FY 2020 results through 31st December 2020 vs. 31st December 2019
FY Sales 3.608941b versus 2.888662b
FY Profit before Fair Value Gain 789.719m versus 931.063m
FY Fair Value Gain in non-current biological assets 57.813m versus 83.414m
FY Profit before Tax 847.532m versus 1.014477b
FY Profit After Tax 622.034m versus 713.439m
FY EPS 31.74 versus 36.40
FY Cash and Cash Equivalents 1.670124b
FY Dividend 18.00 versus 14.00

Company Commentary

robust results
Avocado and macadamia export volumes were higher than in 2019 but these were not sufficient to mitigate a significant reduction of 34% in the price of avocados
market prices in 2019 were at record highs
Significant increase in Tea Production [569m KG versus 458m KG in 2019] AS IMPACTED NEGATIVELY ON PRICE LEVELS
Results also included the cost of the company defending itself from a UK Law firm who wished to bring Kakuzi into jurisdiction of United Kingdom

Kakuzi Plc - Group Results for the Year Ended 31st December 2020. @Kakuzi_Plc @tradingroomke


Strong results. Diversified Portfolio. Attractive Plantation share.

Kakuzi reports HY 2020 Earnings
HY Sales 889.909m versus 619.463m
HY PBT 204.117m versus 335.082m
HY PAT 272.787m versus 245.581m
HY EPS 13.92 versus 12.53


There was a Financial Provision write back in 2019 not repeated
Avocado market crashed H1 Peru flooded the market + lock down
Blueberry crop


An attractive diversified and agile Plantation Company

Kakuzi PLC FY 2019 results through 31st December 2019 vs. 31st December 2018.

FY Sales 2.888662b vs. 3.152831b -8.379%

FY Profit before fair value gain in non-current biological assets and income tax 931.063m vs. 610.001m +52.633%

FY Fair value gain in non-current biological assets 83.414m vs. 74.082m +12.597%

FY Profit before income tax 1.014477b vs. 684.083m +48.297%

FY Profit for the year 713.439m vs. 481.594m +48.141%

EPS (Basic and diluted) 36.40 vs. 24.57 +48.148%

Dividend per share 14.00 vs. 9.00 +55.556%

Total Equity 5.218325b vs. 4.669476b +11.754%

Cash and cash equivalents at the end of the year 1.696130b vs. 1.500935b +13.005%


An excellent set of results for 2019 showing a pre tax profit of Shs 1,014 million against Shs 684 million of last year as a result of firm market demand and pricing for both avocado and macadamia throughout the year. The earning per Share increased from Shs 24.57 to Shs 36.40. Profitability within the tea operations continued to reflect the difficult trading conditions and significant inflationary pressure on labour and other production costs.

Kakuzi continues to develop its Core Crop Strategy in line with the Groups long term objectives.


Kakuzis cashflow and balance sheet remain strong and in a good position with which to continue its strategic investment plans. The Directors have recommended a dividend of Shs 14.00 per share compared with Shs 9.00 per share in 2018.


Kakuzis commitment to its custodial philosophy remains a prime focus as does developing its agricultural strategy i.e. the diversification of its income stream and the continued expansion of both the avocado and macadamia footprints. The future sustainability and improvement of its operations and water resources, as well as the wellbeing of its employees, forms the very foundation of the Companys daily activities. Not least, supporting local communities through economic empowerment, health, education, environmental, water and sanitation initiatives.

Kakuzis avocado smallholder empowerment programme paid out Shs 93 million (85% of the net returns) to individual farmers and smallholder groups who supplied fruit last year.

Agriculture at Kakuzi continues to perform well in Kenyas current business climate. Despite global political uncertainty, climate change, and volatile commodity markets, the Companys diverse cropping portfolio and commitment to environment sustainability remain the basis of its commercial objectives.

The international markets within which Kakuzi operates are very uncertain as a result of the ongoing pandemic COVID 19 and the supply and demand dynamics are unclear for 2020, making future projections uncertain.


The dry conditions experienced at the beginning of the year seriously affected Kakuzis avocado crop resulting in a decline in yield. However, a global drop in avocado volumes in comparison to 2018, meant an undersupplied market which resulted in excellent prices for most of the season. The macadamia market held firm as a result of lower than anticipated volumes from Australia and sustained demand from China.

Avocado export production was down 45% on 2018 a total of 1.56 million cartons were shipped. Market demand in EU countries continued at unprecedented levels with excellent prices being achieved, however, Kenyas reputation as an origin for quality fruit remains undermined by the export of immature fruit. Logistics improved this year with few delays and no material insurance claims. Kakuzi continues to focus on producing quality fruit as well as its orchard expansion both in terms of size and variety.

Macadamia production was up by 37% on 2018 despite the dry conditions throughout the year. Our products performed well in the market with this being the first year of marketing our product through Green and Gold Macadamias (www.greenandgoldmacadamias.com) who bring with them a wealth of macadamia marketing experience and customer access to a stable, quality supply of processed macadamia.

Market prices remained firm and in line with last year although Kakuzis final selling price was down about 6% as a result of a higher proportion of smaller and commercial grades sold.

Kakuzis forestry operations saw a slight decline in sales of treated poles although sawn timber sales were up on the previous year on the back of firm demand. Sales from Kakuzis roadside shop continue to do well.

In terms of Kakuzis livestock, herd numbers were maintained at an average head count of 4,400 throughout the year and considering the dry weather experienced in the first quarter, sales recovered remarkably in the second half of the year to levels slightly above 2018.

Tea prices were under severe pressure throughout the year due to significant carried forward stocks from 2018s record production that remained in the market. In Nandi Hills, a final agreement was reached with KPAWU on the outstanding CBAs between 2014 and 2019, and payments to employees were completed.

The 10 Ha blueberry operation was established on Kakuzi during the first quarter of the year and the imported plants have grown well and produced a small crop in the last quarter the majority of which was sold locally. A trial export shipment of a small amount was successfully completed.


In a world that is undergoing constant and accelerating change, be this in politics, technology, culture or the environment, we must always be ready to adapt to the new challenges placed by these changes on our business. Kakuzi produces crops that are growing in global demand by a discerning population in search of good quality, healthy food products. Going forward the challenge will be to continue to produce these sustainably, in a constantly changing climate.

With ever changing global economic, political and climatic modifications, Kakuzi looks to continually adapt as we introduce new varieties of our already established crops, and, where appropriate, diversify the type of crops we produce. We are also adopting new technologies in order to reduce the energy used in the production with the aim of reducing our carbon footprint as well as mitigate against rising production costs. Such initiatives will ensure we keep abreast of global changes as well as actively invest in crops, practices and technologies in advance of any dramatic shifts.

As ever, commodity prices are both unpredictable and volatile. In terms of Kakuzis production, it remains largely dependent on the vagaries of the weather and other new threats such as locusts which are becoming increasingly common as a result of the very real impact of climate change.

On behalf of the Board, I would like to sincerely thank all staff for their continued commitment and hard work throughout a year that has posed a set of unique challenges. The Kakuzi staff have approached challenges with great dedication and professionalism which has been nothing but exemplary.

The Board of Directors have been invaluable in their assistance, direction and support of management, enabling them to progress in a productive manner, and I have every confidence that this will continue through next year.



19 March 2020

Kakuzi PLC HY 2019 results through 30th June 2019 vs. 30th June 2018
HY Sales 619.463m vs. 613.118m +1.035%
HY Profit before fair value gain in non-current biological assets and income tax 334.857m vs. 361.927m -7.479%
HY Fair value gain in non-current biological assets 20.225m vs. 20.641m -2.015%
HY Profit before income tax 355.082m vs. 382.568m -7.185%
HY Profit for the year 245.581m vs. 270.454m -9.197%
EPS (Basic and diluted) 12.53 vs. 13.80 -9.203%
Cash and cash equivalents at the end of the period 1.004188b vs. 1.297393b -22.600%
Total Equity 4.455290b vs. 4.738657b -5.980%
The profit before tax for the period to June 2019 was Shs 355.0 million compared to a profit of Shs 382.6 million for the same period last year.
While there was an increase in revenue from avocado sales, lower volumes of unharvested avocado crop resulted in a reduction in the fair value adjustment compared to the prior period.
Revenue from tea declined due to lower production and a weak market. Macadamia results improved as a result of increased production and firmer prices. The results were also impacted by the write back of provisions made in prior years, amounting to Shs 103.2 million.
The sale and export of avocados, the main income stream for the Company, has begun in earnest and whilst the market prices look to be improved over last year, the impact of reduced volumes in comparison to 2018 will be unknown until later in the year.
The Directors do not recommend the payment of an interim dividend.

Kakuzi PLC FY 2018 results through 31st December 2018 vs. 31st December 2017
FY Sales 3.152831b vs. 2.823926b +11.647%
FY Profit before fair value gain in non current biological assets and income tax 610.001m vs. 766.324m -20.399%
FY Fair value gain in non-current biological assets 74.082m vs. 82.799m -10.528%
FY Profit before income tax 684.083m vs. 849.123m -19.437%
FY Profit for the year 481.594m vs. 591.643m -18.601%
EPS Basic and diluted 24.57 vs. 30.19 -18.615%
Dividend per share 9.00 vs. 7.00 +28.571%
Total Equity 4.669476b vs. 4.322036b +8.039%
Cash and cash equivalents at the end of the year 1.500935b vs. 1.648749b -8.965%

The results for 2018 reflect a pre tax profit of Shs 684 million compared to Shs 849 million in 2017. The lower profits are as a result of lower avocado prices achieved, due to a heavily over supplied market in Europe.
Macadamia and forestry profits improved over the previous year as a result of increased production from our orchards and a rise in the demand for wood products. Earnings per share was Shs 24.57 in 2018 compared to Shs 30.19 in 2017.

Kakuzi maintains a strong cash balance, adequate to cover significant investment in new crops, further expansion of our existing crops and continued development of our processing facilities. In line with Kakuzis long term strategy, the key use of cash is reinvestment in the business.
Despite this, we are building a track record of steady dividend growth, a trend that we intend to maintain.
Your Board recommends a dividend of Shs 9 per share compared to Shs 7 per share in 2017.

Kakuzi continues to increase its production volumes of both avocados and macadamia as we see demand continuing to rise for high quality fruit and nuts.
The emphasis on quality cannot be understated as traditional markets become increasingly conscious of food safety requirements and a rapidly expanding choice of where to source products from.
The prospects of new market opportunities developing in China are exciting for both Kakuzi and Kenya as a whole. Kakuzi is working closely with Government authorities to develop the correct protocols which would enable access to this market for Kenyan avocados.
A new crop development into blueberry production represents a significant mile stone for Kakuzi as this further diversifies our product base and potentially increases the number of markets our products are sold into.
Our forestry operations continue to perform well and we see the market for good quality, sustainably produced wood products, remaining stable in the coming years. Our commitment to principles of long termism, sustainability, environmental protection and a custodial philosophy over the assets we manage remains unchanged.
Our ability to contribute to the National agenda on food security is reliant upon these core principles.
The international markets we operate within remain stable and secure but are naturally influenced by the political issues of the day. Brexit is an uncertainty but Kakuzis exposure to the UK markets is limited.
Kakuzi produced a record volume of avocados from its orchards during the year. This however, unfortunately coincided with record production from Peru and South Africa leading to a heavily over supplied market in Europe and a devastating impact on prices.
In total Kakuzi exported 2.84 million cartons 1.59 million cartons in 2017. As a result of the prevailing over supplied market conditions, prices were significantly reduced to levels last seen some years ago and 32% lower than 2017 Euro 6.26 Euro 9.33 in 2017.
New orchard developments continued during the year and Kakuzi remains on target to meet its strategic goal of planting 1,200 ha to various avocado cultivars. In order to best manage the packing and export of this fruit, the Packhouse will be upgraded during 2019. This represents another substantial investment for the Company.
Kenyas reputation as an origin for good quality avocado continues to struggle in the international markets, which remains a challenge for us. It is imperative that, as other countries increase their avocado production, Kenya builds its quality reputation to avoid a long term impact on its exports.
Macadamia production continues to grow as the orchards mature, processing 229 tons in 2018 against 178 tons in 2017. Our cracking facility completed its third season of operation, exporting the product globally. We continue to explore value addition opportunities as well as new technologies to enhance processing efficiency as well as product quality and value.
Kakuzi embarked on a major trial in blueberry production during the year. The first crop is anticipated to be harvested towards the end of 2019. If this commercial scale trial meets expectations, the venture could increase significantly.
Sustainably produced, quality wood products returned a good profit for the Company, contributing over Ksh 126 million to profits. We believe the market for fence posts, utility poles and sawn timber will remain relatively stable in the coming years.
We continue to fell and replant our forests to ensure we have sufficient and sustainable product volume to meet market demands.
Our livestock operations produced nearly 1,000 head of cattle for sale during the year. The butchery is performing well and our herd size remains around 4,400 head. A key aspect to our strategy is to enhance our contribution to the food security of the Nation as we develop our agriculture further.
Tea prices continue to remain under pressure as Kenya produced record volumes in the year. Whilst overall this increases the export earnings for the Country, it does however negatively impact on the price growers receives


Very attractive business. Continue to probe and explore new markets.
Well worth buying and putting away.
I like theproduct diversification.

H1 2018 Earnings through 30th June 2018
H1 Sales 613.118m versus 547.277m +12.030%
H1 Profit before Fair Value Gain in non current biological assets and Income tax 361.927m versus 85.462m +323.49%
H1 Fair Value Gain in non current biological assets 20.641m versus 20.000m
H1 Profit Before income Tax 382.568m versus 105.462m +262.75%
H1 Profit After Tax 270.454m versus 73.203m +269.45%
H1 EPS 13.80 versus 3.73 +269.97%

During the period under review, tea profits improved due to higher volumes and firm prices in Q1.
Avocado results are significantly improved on last years performance due to increased volumes and a strong winter market in Europe
Macadamia and Forestry results made a positive contribution
Tea volume yields +17% on last year
avocado volumes Total containers shipped to the end of June were 73% higher than previous year.
Sales tea 163.496m versus 118.240m
Avocados 173.082m versus 151.804m
Macadamia 87.091m versus 89.138m
Forestry 153.253m versus 108.467m


Strong results. I like the Pivot to Avocados.
Its an attractively priced share.

Kakuzi PLC FY 2017 results through 31st December 2017 vs. 31st December 2016
FY Sales 2.823926b vs. 2.651199b +6.515%
FY Gains arising from changes in fair value less costs to sell of non-current biological assets 82.799m vs. 67.236m +23.147%
FY Cost of sales [1.560515b] vs. [1.421914b] +9.747%
FY Gross profit 1.346210b vs. 1.296521b +3.832%
FY Distribution costs [597.948m] vs. [620.635m] -3.655%
FY Operating profit 754.683m vs. 682.592m +10.561%
FY Interest income 95.820m vs. 76.551m +25.171%
FY Profit before income tax 849.123m vs. 757.779m +12.054%
FY Profit for the year 591.643m vs. 562.425m +5.195%
EPS (Basic and diluted) 30.19 vs. 28.70 +5.192%
Dividend per share 7.00 vs. 6.00 +16.667%
Total Equity 4.322036b vs. 3.846258b +12.370%
Biological assets 663.833m vs. 640.135m +3.702%
Cash and cash equivalents at the end of the year 1.648749b vs. 1.430576b +15.251%

Company Commentary

A Pre Tax profit of 849m versus 758m of last year.
increase in profit is a result of continued market demand for Avocado and Macadamia throughout the year.
Profitability within the tea operations continued to reflect the difficult trading conditions and significant inflationary pressure on labour and other production costs.
Final Dividend of 7 a share.


They are in a sweet earnings spot in particular because of an early pivot to Avocados and the c21st Millennial economy.

H1 Sales 547.277m vs. 437.347m +25.136%
H1 Gains arising from changes in fair value less cost to sell of non current biological assets 20.000m vs. 19.054m +4.965%
H1 Cost of production [460.210m] vs. [381.361m] +20.676%
H1 Gross profit 107.067m vs. 75.040m +42.680%
H1 Distribution costs [52.207m] vs. [53.978] -3.281%
H1 Operating profit 58.477m vs. 23.829m +145.403%
H1 Finance income 46.985m vs. 39.748m +18.207%
H1 Profit before income tax 105.462m vs. 63.577m +65.881%
H1 Profit for the period 73.203m vs. 45.388m +61.283%
Basic and diluted EPS 3.73 vs. 2.32 +60.776%
Total Equity 3.801861b vs. 3.323285b +14.401%
Cash and cash equivalents at the end of the period 1.143772b vs. 731.663m +56.325%
No interim dividend


Strong Results led by Avocados.

FY Sales 2.651199b vs. 2.481844b +6.824%
FY Gains arising from changes in fair value less costs to sell of non current biological assets 67.236m vs. 83.071m -19.062%
FY Cost of sales [1.421914b] vs. [1.326377b] +7.203%
FY Gross profit 1.296521b vs. 1.238538b +4.682%
FY Distribution costs [620.635m] vs. [655.224m] -5.279%
FY Operating profit 682.592m vs. 580.078m +17.672%
FY Finance income 76.551m vs. 88.502m -13.504%
FY Profit before income tax 757.779m vs. 667.341m +13.552%
FY Profit for the year 562.425m vs. 459.714m +22.342%
EPS (Basic and diluted) 28.70 vs. 23.45 +22.388%
Total Equity 3.846258b vs. 3.375897b +13.933%
Cash and cash equivalents at the end of the year 1.430576b vs. 1.175434b +21.706%
Dividend per share 6.00 vs. 5.00 +20.000%
Number of shares 19,599,999

Company Commentary

The results for the year show an increased profit before tax of Ksh 758 million against a restated profit for 2015 of Ksh 667 million. The 2015 profits have been restated due to changes in the Accounting Standards. The earnings per stock unit increased from Ksh 23.45 to Ksh 28.70. The improved profit reflects the favourable market demand for our two core crop products (avocado and macadamia)
Extreme weather patterns during 2016 led to above average rainfall in key tea producing countries, which resulted in a global record in tea production and, thus, a significant decline in price. Unprecedented demand for avocado and the resultant under-supply in the market meant record prices. These same weather patterns caused significant drought in South Africa which had a huge impact on macadamia production leading to an under supply in the market therefore maintaining high prices.
As a result of the excellent growing conditions Kakuzis tea crop in Nandi Hills was 20% up over last year (1,732 tonnes vs 1,446 tonnes). Kenyas national production achieved record levels which had a negative impact on price and resulted in production costs in excess of prices.


Avocado and macadamia stand out

Kakuzi reports H1 2016 Earnings here

H1 Sales 437.347m vs. 420.173m +4.087%
H1 [Loss] profit before fair value gain in biological assets and income tax [109.297m] vs. [33.858m] -222.810%
H1 Fair value gain in biological assets 57.693m vs. 37.411m +54.214%
H1 [Loss] profit before income tax [51.604m] vs. 3.553m -1,552.406%
H1 [Loss] profit for the period [35.238m] vs. 2.436m -1,546.552%
EPS [1.80] vs. 0.12 -1,600.000%
Total equity 3.242240b vs. 2.913664b +11.277%
No interim dividend

Company Commentary

The Loss before Tax for the period under review is 51.6m. This is a somewhat disappointing results has been mainly due to lower tea prices, lower livestock sales and the delay of macadamia sales due to awaiting completion of the cracking facility construction.

To predict financial performance for the year is impossible at this stage with the irregularities of supply and demand together with exchange rate to contend with

Chairmans Statement

The company has fully adopted the amendments to the International Accounting Standard (IAS) 41 Agriculture and our permanent plantings are now classified under IAS 16 property, plant and equipment as bearer plants to be depreciated over their expected useful life. This has resulted
in the original reported profit before tax for the six month period to 30th June 2015 of Ksh 63.8 million being restated to Ksh 3.5 million. The loss before tax for the period under review is Ksh 51.6 million. This somewhat disappointing result has been mainly due to lower tea prices, lower livestock sales and the delay of macadamia sales due to awaiting completion of the cracking facility construction.
We have experienced satisfactory weather conditions in our areas of operation and all our dams in Makuyu are full. The tea crop is 37% up over last year but this has had a negative impact on prices where we now operate below cost of production levels. The avocado factory throughput to date is 760,116 cartons, 18% up on the equivalent position last year made up of our own and smallholder crop. There has been downward pressure on prices due to large deliveries to Europe from Peru and South Africa and logistics on shipping in particular to Southern France have been problematical. Our macadamia harvest has been up to budget levels and we are storing our nut in shell at our new storage facility awaiting completion of the factory, which began operations at the end of July. Prices are similar to last year at present. Livestock sales continue to be a challenge to attract good quality beef market prices. Forestry operations continue with positive development and demand. Our joint project operation produced a positive cash position. We continue with our new planting development on avocado,
macadamia and forestry and are exploring other opportunities for land development.
To predict financial performance for the year is impossible at this stage with the irregularities of supply and demand together with exchange rates to contend with. Labour costs and unrest in particular in our tea operations must be monitored with concern. We expect a satisfactory avocado crop and hope for a positive improvement in tea prices.
The Directors do not recommend a dividend for the first half of the year



These results do not exactly identify where the Year on Year retreat is arising from.
H1 Revenues are barely changed

To predict financial performance for the year is impossible at this stage with the irregularities of supply and demand together with exchange rate to contend with What a strange comment

FY Sales 2.481844b vs. 1.689917b +46.862%
FY Gains arising from changes in fair value less costs to sell of biological assets 114.262m vs. 79.313m +44.065%
FY Cost of sales [1.260464b] vs. [1.132563b] +11.293%
FY Gross profit 1.335642b vs. 0.636667b +109.787%
FY Distribution costs [655.224m] vs. [487.376m] +34.439%
FY Operating profit 677.182m vs. 155.693m +334.947%
FY Finance income 88.502m vs. 84.791m +4.377%
FY Finance cost [1.239m] vs. [7.685m] -83.878%
FY Profit before income tax 764.445m vs. 232.799m +228.371%
FY Profit for the year 527.687m vs. 160.205m +229.382%
EPS 26.92 vs. 8.17 +229.498%
Cash and cash equivalents at the end of the year 1.175434b vs. 0.973690b +20.720%
Dividends per stock unit 5.00 vs. 3.75 +33.333%

Company Commentary

The improved profit is considered satisfactory and was driven to some extent by the weather conditions as well as favourable market demand for
our main export products. Avocado was dominant in returns but Tea and forestry made useful contribution to profits. The weakening Kenya Shilling also worked in our favour as well.
We now have 449 hectares planted to avocado
Dividend Ksh 5 a share


Really muscular.
Avocados, higher Tea Prices and a weaker Shilling boosted earnings big.

First Half Earnings through 30th June 2015 versus through 30th June 2014
First Half Sales 420.173m versus 447.623m -6.13%
Profit before Fair Value Gain in Biological assets and income Tax 46.602m
versus 57.732m
First Half Fair value gain in Biological assets 17.262m versus 18.506m
First Profit before Income tax 63.864m versus 76.238m -16.23%
First Half Profit after Tax 43.428m versus 48.956m -11.29%
First Half Earnings Per Share 2.22 versus 2.50 -11.2%

Company Commentary

The reduced profit has been due mainly to the later than normal start of our avocado season
Our Tea and macadamia operations have both performed better than in the first half of 2014


Kakuzi remains a value Proposition on a NAV Basis.
Earnings always exhibit a powerful H2 Skew.

Kakuzi reports FY Earnings through 31st December 2014 versus 31st December 2013
Full Year Sales 1.689917b versus 1.384375b +22.070%
Profit before Fair value gain in biological assets and Income Tax 153.486m versus 142.989m
Fair Value Gain in Biological Assets 79.313m versus 96.317m
Full Year Profit before Tax 232.799m versus 239.306m -2.719%
Full Year Profit after Tax 160.205m versus 165.028m -2.922%
Full Year EPS 8.17 versus 8.42 2.969%
Full Year Dividend unchanged at 3.75 a share

Company Commentary

Avocados with increased volumes were the significant contributor to profit mitigating very poor prices of Tea in 2014


Creditable results given the extreme weakness seen in Tea Prices in 2014.
Valued on an elevated PE of 34.27 because shareholders are pricing in the Real Estate Arbitrage.
Has rallied sharply in 2015 Strong FY Sales number

First Half Earnings through 30th June 2014 versus through 30th June 2013
First Half Sales 447.623m versus 428.988m +4.34%
Profit before Fair Value gain in biological assets 57.732m versus 91.857m -37.15%
First Half Fair value gain in Biological Assets 18.506m versus 21.015m -11.939%
First Half Profit before income Tax 76.238m versus 112.872m -32.456%
First Half Profit after Tax 48.956m versus 77.172m -36.56%
First Half Earnings Per Share 2.50 versus 3.94 -36.54%
Retained Earnings of 2.771498b 141 a share

Company Commentary

Major cause of the reduced profits has been mainly due to lower Tea Prices in the first half of the year and the increased cost charges to revenue on Macadamia as early planted fields come to maturity.
No Interim Dividend


Tea Price Structure was weak in this reporting period and a Known Known.
Note Retained Earnings now equate to 141.00 shillings a share.
the NAV is also a multiple of the share price.

Full Year Results through 31st Dec 2013 versus through 31st Dec 2012
FY Sales 1.384375b versus 1.564792b
FY Profit before Fair Value gain in biological assets, sales of shares in subsidiary and income tax 142.989m versus 362.364m
FY Fair Value Gain in biological assets 96.317m versus 63.686m
A Full Year Profit via a sale of shares in a subsidiary worth 53.249m was not repeated
FY Profit Before Tax 239.306m versus 479.299m -50.07%
FY Profit After Tax 176.303m versus 405.104m -56.749%
FY EPS 8.42 versus 19.35 -56.485%
FY Dividend 3.75 shillings a share worth 3.125% of Yield

Company Commentary

The major impact on profit arises from our Avocado and Tea Operations both which are significantly down on turnover and Profit compared to 2012


Earnings were soft and correlated to lower Tea Prices through 2013.
I expect a good rebound in Earnings in 2014.
And finally Kakuzi is improving its dividend Pay Out Ratio to 44.53% of Earnings and the Pay Out Ratio has been a Big Issue for Shareholders.
Consider that the NAV is a multiple of the share Price because of the Land value being carried at cost on the Balance Sheet.
Kakuzi Tea Full Year +37.95% Trading 10 Year High

H1 2013 Earnings through June 2013 versus H1 2012 Earnings
H1 Revenue 428.988m versus 336.109m +27.6335%
H1 Gains arising from changes in fair value less cost to sell of biological assets 21.015m versus 18.025m
H1 Cost of Production [323.261m] versus [264.068m]
H1 Gross Profit 126.742m versus 90.066m +40.72%
H1 Distribution Costs [60.264m] versus [31.836m]
H1 Operating Profit 72.923m versus 62.272m
H1 Finance Income 39.949m versus 54.274m -26.39385%
H1 PBT 112.872m versus 116.546m -3.152%
H1 Profit for the period from continuing operations 77.172m versus 71.243m
H1 Profit for the period from discontinued operations 0.00 versus 32.147m
H1 PAT 77.172m versus 103.39m
H1 EPS 3.94 versus 4.46
No Interim Dividend

Company Commentary

Profit levels are lower on the tea operation primarily driven by lower prices. However, this negative impact is alleviated to some extent by increased profit levels on the avocados mainly as a result of packing higher volumes of Smallholder Hass avocado.

Good weather conditions were experienced on our estates in Nandi and Makuyu during the first quarter of the year. Although the rains dried up rather suddenly towards end of April 2013 we are 49% up on the 10 year average rainfall pattern at the half year stage. It is pleasing to note that our dam levels at Makuyu are satisfactory for the time of year.

Tea production on our Kaboswa Estate is up by 50% compared with last year.
Due to the high production levels of Made Tea recorded this year in Kenya, supply has outstripped demand thus reducing the price for our green leaf by some 6%. On Avocado, Smallholder Hass production to 30 June 2013 was 329,186 cartons (to 30th June 2012 18,734 cartons). Fuerte production through the pack house was down on last year due to declining market demand
for this product. Our own Hass crop started during early June. Although the season is far from completed our expectations are for significantly lower volumes compared to last year. There has been adequate uptake of the export crop but prices in Kenya Shilling terms are only similar to last year, a position however which may improve through the relative weakness of the Kenya shilling against the Euro.


Evidently Volumes have made up largely for the Price decline.

The One Off Gain was not repeated.

Kakuzi is a cheap share on a Trailing PE of 4.341 and on a NAV Basis where I estimate NAV is 8x value of share price.
Kakuzi H1 2013 Earnings Release here

FY Results Through December 2012 versus FY Through Dec 2011
FY Sales 1.564792b versus 1.560149b
Biological Asset Gains 63.686m versus 157.411m
FY Total Revenue 1.628478b versus 1.717559b
Cost of Production 895.249m versus 841.447m
Release of Provision 0 versus 109.024m
FY Distribution Costs [417.975m] versus [355.981m] +17.41%
Profit on Sales of Shares in Subsidiary 53.249m versus 0
FY Operating Profit 385.719m versus 629.408m
FY Finance Income 93.58m versus 21.078m +343.97%
FY PBT 479.299m versus 650.486m -26.304%
FY PAT 379.357m versus 549.936m -31.01%
FY EPS 19.35 versus 28.06 -31.04%
FY Dividend 3.75 a share

Kakuzi Limited Chairman Statement For the year ended 31 December 2012


The profit before tax from continuing operations is Kshs 479 million (2011 Kshs 650 million). It should be noted that this profit before tax accounts for gains arising from changes in biological assets amounts to Ksh 64 million (2011 Ksh 157 million). The net profit attributable to members of Kakuzi Limited is Kshs 379 million (2011 Kshs 550 million). These profits are considered satisfactory although are down on last year having been affected by only eight months trading of Siret tea operations, the prevailing strength of the exchange rate together with relatively poor prices attained on avocados.


Most of the year saw rainfall above the long-term average with only the first quarter of the year being below. The strategic dams maintained adequate operating levels in order to meet irrigation needs. The early avocado Fuerte crop throughput was down on last year at 434 tonnes versus 1,213 tonnes in 2011 as a result of poor market conditions. The Hass crop was higher than the previous year at 5,965 tonnes versus 3,538 tonnes in 2011 although the sales value declined in both Euro and Sterling terms. When combined with the strong local currency, returns in Kenya Shilling terms were significantly down. The negative price impact was mainly due to an oversupply on the European markets. Port and shipping logistics continued to be problematic a grave concern for a market that requires speedy delivery in order to guarantee a high quality end product. Kakuzi continues as the major exporter of Kenyan avocados a position that is to be consolidated and strengthened. The avocado operation performed well and currently comprises a total of 414 hectares of orchard under irrigation. The drier conditions at the start of the year resulted in few cattle being available for sale which, in turn, led to an overall drop in numbers for the year and therefore a net loss. The cattle herd comprised 4,468 head at the end of the year. The pineapple Joint Project produced a small return towards profits. Forestry continues with its long-term focus of growth and development, and the value-add side of the operation maintained a
reasonable profit. Ongoing investment continues in the macadamia operation 585 hectares have now been planted. A de husking facility has been built and is operating well (to be followed by the construction of a cracking facility in 2016). In 2013 a small crop is expected to be harvested from early plantings. Relations with the Labour Union were fraught during the first half of the year. Although Kakuzi has complied with the law, and dealt with disputes in a diligent and professional manner, a strike incident occurred placing both personnel and property at risk. During the latter part of the year, relations improved dramatically and low levels of arson and other criminal activity were reported.


Rainfall was in line with the previous year despite a very dry beginning coupled with a harsh frost which resulted in lower estate cropping levels at 2,320 tonnes. Factory production for the eight months period to end August was 1,732 tonnes. Prices were slightly up over 2011 in US Dollar terms and, despite the strong Shilling, resulted in satisfactory contribution towards profit. Kakuzi sold the remaining 50.5% in Siret Tea Company on 31st August 2012 bringing to a conclusion the out grower
empowerment project. Kaboswa Estate (510 hectares of tea) remains with Kakuzi Ltd and made a significant contribution to the Companys profits in 2012.


This area continues to be a strong focus for the Board. The momentum with regards to the Companys Corporate Social Responsibility initiative continues apace. Kakuzis attention to quality production continues to receive international recognition. Sustainability as regards the Company forestry operations and protection of its water resources remains a priority. The Board of Directors has been diligent in ensuring shareholders interests are recognised and adhered to through both local
and international standards.


Being a highly topical and emotive issue, and forming part of Kenyas New Constitution, it is important to emphasise Kakuzis wholehearted commitment towards the full realisation of its agricultural potential in the interests of all shareholders.

Kakuzi Limited Chairmans Statement (Continued) For the year ended 31 December 2012


The Board recommends a payment of a 75% dividend equivalent to Kshs 3.75 per stock unit.


The outlook for the year ahead is hard to envisage with any real clarity.
An excellent tea crop was recorded in Nandi Hills in January following favourable weather conditions. Despite similar weather patterns on the Makuyu estates, however, initial indications for the avocado crop are well below expectation. World recessionary forces continue and their respective impacts on the consumption of Kakuzis crops, as well as the currencies in which they are sold, are difficult to predict. Local inflationary trends remain a big concern though it is pleasing that the Kenyan General Elections, held for the first time under the new constitution, were carried out peacefully which should make the local economic factors more stable. The Company does, however, move forward with a satisfactory cash position giving it a firm base to proceed with both its present and ongoing investments.

28 March 2013


Notwithstanding the 26.304% slide in FY PBT to 479.299m, Kakuzi trades on a Trailing PE of 4.134 and that remains inexpensive.
Furthermore the NAV of the Land has not been marked to market and There is surely a seriously material Uplift to be had.

H1 2012 Swot Analysis
Sales 336.109m versus 394.103m -14.71544%
Profit Before Tax and FV Biological Gain 98.521m versus 50.204m +96.241%
Fair Value Biological Gain 18.025m versus 9.425m
Profit Before Tax 116.546m versus 59.629m +95.45%
Earnings Per Share 4.46 versus 4.35 +2.528%

Company Commentary

The interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). Tea production has been down on last years level while prices have remained firm. This coupled with the appreciating Kenya Shilling has resulted in reduced Tea profits.
The early outgrower Fuerte Avocado season was reasonable. Prospects for the Hass Avocado season are not, as yet, quantifiable regarding pricing and volumes. Sireet Outgrowers Empowerment and Producer Co Ltd (formerly EPK Outgrowers Empowerment Project Company Ltd) advised Kakuzi Ltd on 18 May 2012 of its intention to purchase the balance 50.5% shareholding in Siret Tea Company Ltd (STCL) in accordance with the framework agreement signed in 2007. The Competition Authority of Kenya has given approval for this sale and as a result, STCL operations have been treated as assets held for sale at the reporting date and income and expenses are reported separately from the continuing operations of the Kakuzi Group. The Directors do not recommend the payment of an Interim Dividend.


FY Turnover last Year was 2.376862b versus H1 2012 Turnover of 336.105 means H1 Results give us 14.14% of the Total FY Picture. The Disposal of Sireet is creating a 283.315m Hit through the Balance Sheet. Kakuzi is all about H2.

FY 12 Months through 31st Dec 2011 versus FY through Dec 2010 Turnover 2.376862b versus 2.113774b +12.4476% Profit before Fair Value Gain and Write Back 0.593647b versus 0.434206b
+36.72% Fair Value Gains in Biological Assets 217.442m versus 124.837m +74.18%
Release of Provision 109.024m
Profit Before Tax 920.093m versus 558.629m +64.7055%
Profit After Tax 644.397m versus 388.666m +65.797%
Earning Per Share 28.06 versus 15.99 +75.484%
Full Year Dividend 3.75 shillings a share versus 2.5 shillings +50%

Production Lower but Prices Paid more than offset [and some] the Difference.
Organic Growth of 36.72%.
See Previous Analysis for the Write Back Information.
The Dividend Pay Out Ratio is sub Optimal.

Swot Analysis 6months to June 2011 versus June 2010
Sales 872.073m versus 808.271m
EPS 4.35 versus 4.22 +3.08%
No Interim Dividend


There is a Strong H2 Earnings Skew.

FY Dec 2010 versus FY Dec 2009
Sales 2.113774b versus 2.008157b
PBT 553.934m versus 558.89m
EPS 15.87 versus 17.34 -8.4775%
Dividend 2.50 a share

From Company Commentary

Net returns on the avocado crop in particular the Fuerte variety was lower than the previous year however profit on the Tea operations was ahead of 2009 levels.

The company has received a claim for an alleged overpayment of Shs 109 million from Delmonte Kenya Ltd (DMKL) following the discovery of an alleged error made by DMKL in calculating the sale price of pineapples for the joint venture for the years 2007 and 2008. Although the matter is still to be concluded, the directors consider it prudent to make a provision for this claim as an adjustment to prior years financial statements.


Slightly behind last Year. EPS was -8.4775%. 3.47% Effective Dividend Yield looks a little Mean versus an EPS of 15.87 giving a Pay Out Ratio of 15.75%. However, Agri Prices have entered a New Normal and I believe have permanently shifted higher. Therefore, the PE of 4.53 looks quite inexpensive and There is the added Narrative of where Kakuzis Land is located on the Thika Road. Some of that Land [which is carried at historic Cost on the Balance Sheet] can be converted into Real estate and a Great Deal of Value unlocked for Shareholders.
Average Price Over the last 5 Weeks
Average Price Over the last 5 Months
No. Of Shares Traded Over the last 5 Weeks
No. Of Shares Traded Over the last 5 Months
Market Capitalization Over the last 5 Weeks
Market Capitalization Over the last 5 Months
Data Source: Nairobi Stock Exchange
Trading Day: 31 Jan 2023
  19-AUG-2022 ::  Half Year Results
  Unaudited Results for the Six Months Ended 30th June 2022.

Download N.S.E Announcement
  23-MAR-2022 ::  Full Year Results
  Group Results for the Year Ended 31st December 2021.

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