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Eaagads Ltd.
www.eaagads.com
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Par Value: 1/25
Closing Price: 13.00
Total Shares Issued: 32157000.00
Market Capitalization: 418,041,000
EPS: 0.05
PE: 260.000
Full Year earnings for financial year ended 31st March 2021
FY Revenue 139.662m versus 48.622m +187.24%
FY Fair Value Gain [Loss] on biological Assets 4.121m versus [9.637m]
FY Cost of Production [85.479m] versus [73.996m]
FY Gross Profit [Loss] 58.304m versus [35.011m]
FY Net Operating Costs [53.644m] versus [42.077m]
FY Profit [loss] before Taxation 4.660m versus [77.088m]
FY Profit [Loss] for the Year 1.750m versus [66.705m]
Revaluation surplus 176.080m versus 51.645m
FY Total comprehensive income 177.830m versus [15.060m]
FY EPS 0.05 versus [2.07]
Commentary
Company produced 233 tonnes of Coffee versus 114 tonnes produced previous year
average price realised during the year 2021 increased to $5.52 per KG versus $3.75 per KG
Company also revalued its freehold land [44 hectares]
remaining Land is leasehold 341 hectares
Eaagads coffee continues to attract a premium
Eaagads audited results for period ended 31 March 2021 @NSE_Investors
https://twitter.com/NSE_Investors/status/1420599816363593729?s=20
Conclusions
a significant improvement. higher volumes + better prices
Coffee Prices are in a sweet spot
FY Earnings through 31st March 2020 versus 31st March 2019
FY Revenue 48.622m versus 179.615m
FY Gross [Loss]/Profit [37.378m] versus 40.085m
FY [Loss] Profit for the Year [69.997m] versus 2.647m
FY EPS [2.18] versus 0.08
Commentary
114 tons of Coffee compared with 419 tons
severe drought in first half of the Year
Average price increased to $3.75 per KG versus $3.37
Revaluation surplus of 51.6m = Freehold Land
International Coffee prices at 1000 US cents per pound lowest level for more than a decade.
No Dividend
Eaagads Limited HY 2020 results through 30th September 2019 vs. 30th September 2018
HY Revenue 14.900m vs. 35.982m -58.590%
HY Fair value gain on biological assets [0.870m] vs. 0.191m -555.497%
HY Cost of production [42.008m] vs. [63.977m] -34.339%
HY Gross [loss] [27.978m] vs. [27.784m] +0.698%
HY Loss before taxation [44.536m] vs. [46.554m] -4.335%
HY Loss for the period [43.321m] vs. [46.624m] -7.084%
Basic and diluted EPS [1.35] vs. [1.45] -6.897%
Total Equity 803.595m vs. 769.540m +4.425%
Cash and cash equivalents at the end of the period 3.697m vs. 1.598m +131.352%
PERFORMANCE
During the six month period under review the Company incurred an after tax loss of Kshs. 43.3 Million, as compared to an after tax loss of Kshs.46.6 million in the previous year. The realized sales revenues were Kshs. 14.9 million (2018: Kshs. 35.9 million) which were affected by the depressed international coffee prices due to an oversupply in the South American countries amid suppressed production volumes due to lower than projected coffee volumes.
Early crop volumes for the six month period decreased by 44% [2019: 46Tons 2018: 94 Tons] as a result of severe drought in the first half of the year coupled by high temperatures. Coffee is especially sensitive to such high temperatures a factor that contributed to poor flowering of
the crop. The coffee average prices decreased by more than 25% [ 2019: $2.81, 2018: $3.73] in the period under review.
OUTLOOK
The Companys coffee bushes are in good shape under the management of CMS. Management has continued to embark on coffee tree nutrition practices to ensure that Eaagads coffee quality levels are not compromised. Prudent cost management will also result in cost savings.
INTERIM DIVIDEND
The Board of Directors do not recommend the payment of an interim dividend for the six months ended 30 September 2019 [30 September 2018: Nil].
BY THE ORDER OF THE BOARD
CHAIRMAN
12 November 2019
FY Revenue 179.615m vs. 83.696m +114.604%
FY Fair value [loss]/ gain on biological assets [3.212m] vs. 7.566m +142.453%
FY Cost of production [136.318m] vs. [112.809m] +20.840%
FY Gross profit 40.085m vs. [21.547m] +286.035%
FY Net operating costs [38.357m] vs. [30.311m] +26.545%
FY Profit before taxation 1.728m vs. [51.858m] +103.332%
FY Tax credit/ [charge] 0.919m vs. [10.669m] +108.614%
FY Profit/ [Loss] for the period 2.647m vs. [62.527m] +104.233%
Basic and diluted EPS 0.08 vs. [1.94] +104.124%
Total Equity 846.918m vs. 816.165m +3.768%
Cash and cash equivalents at the end of the period 29.845m vs. 0.272m
RESULTS SUMMARY
The above are extracts of the Financial Statements that were approved by the Board of directors on 26 July 2019. These accounts were audited by Ernst & Young LLP, Certified Public Accountants and received an unqualified audit opinion.
PERFORMANCE
During the year under review, the company produced 419 tons of coffee compared with 154 tons in 2017/18. The increase was mainly attributed to favourable weather coupled by good agronomical practices. The company achieved sales of 416 tonnes of coffee compared with 252 tonnes in 2017/18. The average price realised during the year increased to USD 3.37 per kilogram from USD 3.32 per kilogram in the prior year.
The Company reported a profit before tax of KShs 1.7 million compared to a loss before tax of KShs 51.8 million in the previous financial year, largely due to the year on year increase in coffee revenues by 115 per cent. Revenue was KShs 179.6 million in 2018/19 compared to 83.7 million in 2017/18. The cost of production is directly correlated with production levels. Picking and wet processing costs went up by KShs 28 million. Crop commission charges increased by KShs 8.6 million, attributable to a crop sale commission of 2.75% levied, mainly due to timing of crop sales. Farm management fees remained at USD 7.5 per hectare.
The Company also revalued its freehold land (44 hectares) and this resulted in a revaluation gain of KShs 25.8 million, net of tax. The remaining land, is held on a leasehold basis and measures 341 hectares, is not subjected to a valuation, in compliance with the International Accounting Standards.
OUTLOOK
The companys coffee bushes are in good shape under the management of CMS. We have experienced severe drought from Jan to May 2019 with extreme high temperatures. Coffee is especially sensitive to such high temperatures, a factor that contributed to poor flowering of the crop. The initial expectation for 2019 crop was pegged at 350 tons but due to this factor we are expecting a significantly lower harvest. International coffee market prices have reached unprecedented low levels, currently having the New York benchmark market under USD 100 cents per pound, which is the lowest level for more than a decade. The coffee price decreased by more than 19% in the current financial year, from USD 118 cents per pound to USD 95 cents per pound. There can therefore be no certainty as to what prices will look like in the near future. Eaagads coffee continues to attract a premium in the market due to its quality, although it is still impacted by the International coffee prices.
DIVIDEND
The financial performance of the company improved during the current financial year however, the reserves of the company are still not substantial enough to warrant a distribution to shareholders, especially considering the adverse weather conditions experienced in early 2019 and the declining trend in international coffee prices.
The board of directors therefore do not recommend payment of a dividend for the year ended 31 March 2019 (31 March 2018 Nil)
By the Order of the Board
Company Secretary
Eaagads Limited HY 2019 results through 30th September 2018 vs. 30th September 2017
Eaagads Limited HY 2020 results through 30th September 2019 vs. 30th September 2018
HY Revenue 14.900m vs. 35.982m -58.590%
HY Fair value gain on biological assets [0.870m] vs. 0.191m -555.497%
HY Cost of production [42.008m] vs. [63.977m] -34.339%
HY Gross [loss] [27.978m] vs. [27.784m] +0.698%
HY Loss before taxation [44.536m] vs. [46.554m] -4.335%
HY Loss for the period [43.321m] vs. [46.624m] -7.084%
Basic and diluted EPS [1.35] vs. [1.45] -6.897%
Total Equity 803.595m vs. 769.540m +4.425%
Cash and cash equivalents at the end of the period 3.697m vs. 1.598m +131.352%
PERFORMANCE
During the six month period under review the Company incurred an after tax loss of Kshs. 43.3 Million, as compared to an after tax loss of Kshs.46.6 million in the previous year. The realized sales revenues were Kshs. 14.9 million (2018: Kshs. 35.9 million) which were affected by the depressed international coffee prices due to an oversupply in the South American countries amid suppressed production volumes due to lower than projected coffee volumes.
Early crop volumes for the six month period decreased by 44% [2019: 46Tons 2018: 94 Tons] as a result of severe drought in the first half of the year coupled by high temperatures. Coffee is especially sensitive to such high temperatures a factor that contributed to poor flowering of
the crop. The coffee average prices decreased by more than 25% [ 2019: $2.81, 2018: $3.73] in the period under review.
OUTLOOK
The Companys coffee bushes are in good shape under the management of CMS. Management has continued to embark on coffee tree nutrition practices to ensure that Eaagads coffee quality levels are not compromised. Prudent cost management will also result in cost savings.
INTERIM DIVIDEND
The Board of Directors do not recommend the payment of an interim dividend for the six months ended 30 September 2019 [30 September 2018: Nil].
BY THE ORDER OF THE BOARD
CHAIRMAN
12 November 2019
FY Revenue 179.615m vs. 83.696m +114.604%
FY Fair value [loss]/ gain on biological assets [3.212m] vs. 7.566m +142.453%
FY Cost of production [136.318m] vs. [112.809m] +20.840%
FY Gross profit 40.085m vs. [21.547m] +286.035%
FY Net operating costs [38.357m] vs. [30.311m] +26.545%
FY Profit before taxation 1.728m vs. [51.858m] +103.332%
FY Tax credit/ [charge] 0.919m vs. [10.669m] +108.614%
FY Profit/ [Loss] for the period 2.647m vs. [62.527m] +104.233%
Basic and diluted EPS 0.08 vs. [1.94] +104.124%
Total Equity 846.918m vs. 816.165m +3.768%
Cash and cash equivalents at the end of the period 29.845m vs. 0.272m
RESULTS SUMMARY
The above are extracts of the Financial Statements that were approved by the Board of directors on 26 July 2019. These accounts were audited by Ernst & Young LLP, Certified Public Accountants and received an unqualified audit opinion.
PERFORMANCE
During the year under review, the company produced 419 tons of coffee compared with 154 tons in 2017/18. The increase was mainly attributed to favourable weather coupled by good agronomical practices. The company achieved sales of 416 tonnes of coffee compared with 252 tonnes in 2017/18. The average price realised during the year increased to USD 3.37 per kilogram from USD 3.32 per kilogram in the prior year.
The Company reported a profit before tax of KShs 1.7 million compared to a loss before tax of KShs 51.8 million in the previous financial year, largely due to the year on year increase in coffee revenues by 115 per cent. Revenue was KShs 179.6 million in 2018/19 compared to 83.7 million in 2017/18. The cost of production is directly correlated with production levels. Picking and wet processing costs went up by KShs 28 million. Crop commission charges increased by KShs 8.6 million, attributable to a crop sale commission of 2.75% levied, mainly due to timing of crop sales. Farm management fees remained at USD 7.5 per hectare.
The Company also revalued its freehold land (44 hectares) and this resulted in a revaluation gain of KShs 25.8 million, net of tax. The remaining land, is held on a leasehold basis and measures 341 hectares, is not subjected to a valuation, in compliance with the International Accounting Standards.
OUTLOOK
The companys coffee bushes are in good shape under the management of CMS. We have experienced severe drought from Jan to May 2019 with extreme high temperatures. Coffee is especially sensitive to such high temperatures, a factor that contributed to poor flowering of the crop. The initial expectation for 2019 crop was pegged at 350 tons but due to this factor we are expecting a significantly lower harvest. International coffee market prices have reached unprecedented low levels, currently having the New York benchmark market under USD 100 cents per pound, which is the lowest level for more than a decade. The coffee price decreased by more than 19% in the current financial year, from USD 118 cents per pound to USD 95 cents per pound. There can therefore be no certainty as to what prices will look like in the near future. Eaagads coffee continues to attract a premium in the market due to its quality, although it is still impacted by the International coffee prices.
DIVIDEND
The financial performance of the company improved during the current financial year however, the reserves of the company are still not substantial enough to warrant a distribution to shareholders, especially considering the adverse weather conditions experienced in early 2019 and the declining trend in international coffee prices.
The board of directors therefore do not recommend payment of a dividend for the year ended 31 March 2019 (31 March 2018 Nil)
By the Order of the Board
Company Secretary
Eaagads Limited HY 2019 results through 30th September 2018 vs. 30th September 2017
HY Revenue 36.006m vs. 44.692m -19.442%
HY Fair value gain on biological assets 0.191m vs. 5.192m -96.321%
HY Cost of production [63.977m] vs. [57.598m] -11.075%
HY Gross [loss] [27.783m] vs. [7.714m] -260.163%
HY Loss before taxation [46.555m] vs. [21.382m] -117.730%
HY Loss for the period [46.625m] vs. [20.535m] -127.051%
Basic and diluted EPS [1.45] vs. [0.64] -126.563%
Total Equity 769.540m vs. 830.050m -7.290%
Cash and cash equivalents at the end of the period 1.598m vs. 3.596m -55.562%
HY Revenue 44.692m vs. 72.677m -38.506%
HY Fair value gain [Loss] on biological assets 5.192m vs. [30.240m] +117.169%
HY Cost of production [57.598m] vs. [40.525m] -42.130%
HY Gross [loss]profit [7.714m] vs. 1.911m -503.663%
HY Loss before taxation [21.383m] vs. [11.668m] -83.262%
HY Loss for the period [20.536m] vs. [7.675m] -167.570%
Basic and diluted loss per share [0.64] vs. [0.24] -166.667%
Equity 830.049m vs. 684.258m +21.306%
Cash and cash equivalents at the end of the period 3.596m vs. 3.592m +0.111%
No interim dividend
Company Commentary
During the 6 month period under review, the Company made an after tax loss of 20.5m as compared to an after tax loss of 7.6m in the previous year. This is principally due to the prolonged dry weather which has resulted to reduced crop and increased coffee upkeep cost.
Due to the turbulence in the international coffee prices, there was a significant decrease in coffee sales revenues due to lower coffee volumes and a decrease in the market prices of coffee in the period.
No interim dividend.
Conclusions
Soft, real soft.
Eaagads Limited FY 2017 results through 31st July 2017 vs. 31st July 2016
FY Sales 140.224m vs. 126.012m +11.278%
FY [Loss] gain arising from changes in fair value of biological assets at fair value less costs to sell [1.279m] vs. 3.487m -136.679%
FY Cost of production [67.178m] vs. [89.082m] -24.589%
FY Gross profit 71.767m vs. 40.417m +77.566%
FY Administrative Expenses [41.746m] vs. [31.428m] +32.831%
FY Profit before tax 32.212m vs. 9.691m +232.391%
FY Profit for the year 18.107m vs. 0.477m +3,696.017%
EPS 0.56 vs. 0.01
Cash and cash equivalents at the end of the year 0.4m vs. 1.012m -60.474%
FY Total Assets 922.802m vs. 761.165m +21.235%
FY Total Equity 850.586m vs. 691.936m +22.928%
Company Commentary
Average price realised during the year increased to $4.218 per KG versus 3.863 per KG
Production volumes increased from 326 tons in 2016 to 424 tons in the current financial year
The other comprehensive income reflects the after tax revaluation surplus of the companys freehold land measuring 44 hectares.
remaining land is 341 hectares is leasehold land and therefore not subject to revaluation.
No Dividend
Conclusions
Stronger results off a low base, however.
FY Revenue 126.012m vs. 101.468m +24.189%
FY Fair value gain [loss] on biological assets 3.487m vs. [3.272m] +206.571%
FY Cost of production [89.082m] vs. [74.533m] +19.520%
FY Gross profit 40.417m vs. 23.665m +70.788%
Profit [loss] before tax 9.691m vs. [9.305m] +197.772%
Tax [charge] credit [9.214m] vs. 30.460m -108.815%
Profit for the year 0.477m vs. 21.115m -97.741%
EPS 0.01 vs. 0.66 -93.939%
Cash and cash equivalents at the end of the year 1.012m vs. 3.174m -68.116%
No dividend
Company Commentary
The main contributor to the reduction in the after tax profits in the year is due to deferred Tax.
focussed on our vision of being a world class pioneer in the coffee industry.
Conclusions
Tax Charge refers
Eaagads Limited H1 2016 results through 30th September 2015 vs. 30th September 2014
H1 Revenue 44.730m vs. 42.008m +6.48%
H1 Fair value gain on biological assets 13.089m vs. 22.582m -42.04%
H1 Cost of production [35.471m] vs. [36.167m] -1.92%
H1 Gross profit 22.348m vs. 28.423m -22.37%
H1 Profit before taxation 13.614m vs. 18.773m -27.48%
H1 Profit for the period 9.530m vs. 11.998m -20.57%
EPS 0.30 vs. 0.37 -18.92%
Cash and cash equivalents at the end of the period 0.936m vs. 0.827m +13.18%
Total assets 630.711m vs. 467.435m +34.93%
Conclusions
This is cheap share on a Net Asset Value Basis
Full Year Earnings through 31st March 2014 versus through 31st March 2013
FY Revenue 95.635m versus 68.025m
Fair Value Loss on Biological Assets [35.465m] versus [31.665m]
FY Cost of Production [87.910m] versus [91.583m]
Gross Profit [27.740m] versus [55.213m]
FY Profit before Tax [58.676m] versus [83.223m]
FY Profit after Tax [41.864m] versus [59.215m]
FY Loss per share [1.30] versus [1.84]
Conclusions
The Net Asset Value of this company is a multiple of the share price and the market Cap of 1.1174555b shillings.
The Estate is 385.402 Hectares $33,000.00 a Hectare. Thats the Net Asset Value Discount right there
Coffee prices rose sharply in the First Half and will reverse biological Losses next time around.
H1 Earnings through Sep 2012 versus through Sep 2011
Revenue 19.183m versus 68.407m
Fair Value Loss or Gain [62.283m]
Cost of Production 47.072m versus 36.255m
Gross Profit -90.172m versus +32.152m
Administrative Costs 9.913m versus 5.831m
H1 PBT -100.085m versus 26.321m
Diluted EPS -2.53 versus +0.82
Issued a Profits Warning
From the Commentary
Eaagads Coffee fetched an Average $3,200 per Tonne versus $5,800 per Tonne
Conclusions
Poor results. Since They seem unable to make money from Coffee they should sell the Estate or start with the Grasslands and return the cash to Shareholders because it would unlock a lot of Value
Eaagads
http://174.121.37.84/~kofinaf/index.php?option=com_content&view=article&id=24&Itemid=16
Eaagads Estate is a coffee farm owned by Eagaads company limited (a company listed in the Nairobi stock Exchange) managed by Kofinaf Co. Ltd [formerly Socfinaf Co.ltd] and is located in Thika Division of Thika District Kiambu county.The estate main activities include coffee growing and pulping before delivery to the coffee mill. It lies on L.R.No. 8408 and 7787 whose total holding is 385.402 Ha, broken down as follows
Coffee bearing 203.37Ha
Grasslands 149.737Ha
Fuel plantation 13.295Ha
Dams nil
Sites 19.00 Ha
TOTAL AREA 385.402Ha.
Full Year Results through 31st March 2012 versus Through 31st March 2011
Revenue 157.075m versus 184.597m
Cost of Production [103.161m] versus [123.236m]
Gross Profit 56.065m versus 116.146m
PBT 36.178m versus 101.48m
PAT 21.805m versus 71.784m
Earnings Per Share EPS 1.36 versus 4.46.
Biological Gains 2.1m versus 54.8m
Surplus on Revaluation of Property 221.907m
First and Final Dividend 1.25 a share
1 for 1 Bonus
6 Months to Sep 2011 versus 6 Months to Sep 2010
Revenue 68.407m versus 64.604m
In Sep 2010 Eaagads took a 47.359m Biological Revaluation.
The Company has elected not to book a Biological Revaluation in 2011.
You do not have to be a Rocket Scientist to calculate that The Revaluation would be material.
EPS 1.64 versus 2.21
Operating Profit was 26.3m versus -11.86m.
Conclusions
The Operating Profit Figure gives you a more accurate Picture of the P and L. I have an Issue with why the Company would elect to duck
beneath the Globally Accepted Accounting Standards.
Swot Analysis 2009 versus 2008
Sales 120.298m versus 71.259m +68.81%
Cost of Production 96.244m versus 41.248m +133.33%
PBT 16.83m versus 42.96m -60.824%
PAT 11.838m versus 29.686m
EPS 0.74 versus 1.85
Conclusions
The Spike in the Cost of Production +133.33% versus a 68.81% spike in Sales makes little sense. |
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Data Source: Nairobi Stock Exchange
Trading Day: 14 Oct 2021
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29-JUL-2021 :: Full Year Results |
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Audited Results for the Financial Year Ended 31st March 2021.
Download N.S.E Announcement
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