|
|
| |
Kapchorua Tea Company Ltd.
www.kapchoruatea.co.ke
|
Par Value: 5/-
Closing Price: 90.00
Total Shares Issued: 7824000.00
Market Capitalization: 704,160,000
EPS: 0.9
PE: 100.000
Kapchorua Tea reports FY Earnings through 31st March 2021 versus 12 months through 31st March 2020
FY Revenue 1.445640b versus 1.134302b
FY Loss from Operations before Tax [10.758m] versus [41.065m]
FY Increase in Fair value of biological Assets 21.030m versus 21.801m
FY Net Finance Income 23.842m versus 30.588m
FY Profit before Taxation 34.114m versus 11.324m
FY Tax [charge]/ credit [27.049m] versus 8.113m
FY Profit for the Year 7.065m versus 19.437m
FY Total other comprehensive income 130.545m versus 17.980m
FY Total comprehensive Income 137.610m versus 37.417m
FY EPS 0.90 versus 2.48
FY Cash and Cash Equivalents 458.161m versus 352.800m
FY Dividend 10 shillings a share
Commentary
The global Covid 19 pandemic,weakening economies ,an over supply of Kenya tea coinciding with weak demand from certain areas all contributed to a difficult year.
The over supply of Kenya tea resulted in very depressed prices throughout the year.
It is however pleasing to record that Kapchorua out performed market expectations and achieved success,often outselling competitors and reaching new markets.
The future looks very difficult, with major buyers in and out of the market and with availability of tea remaining very high quantities may be purchased at leisure.
The audited financial statements and our report thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated 29 June 2021.
That report also includes the communication of a key audit matter related to valuation and measurement of biological assets.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Company financial statements of the current period.
Conclusions
Dividend Yield is 11.76%
Interesting comparison with Williamson
It is however pleasing to record that Kapchorua out performed market expectations and achieved success,often outselling competitors and reaching new markets.
Kapchorua Tea H1 Earnings for 6 months through 30.09.2020
HY Turnover 669.734m versus 338.221m
Loss before Taxation [16.906m] versus [21.527m]
Loss for the Period [12.680m] versus [15.069m]
Loss Per Share [1.62] versus [1.93]
Kapchorua Tea Kenya PLC H1 2020 results through 30th September 2019 vs. 30th September 2018
H1 Turnover 388.221m vs. 724.020m -46.380%
H1 [Loss] from operations before tax [41.632m] vs. [44.463m] -6.367%
H1 Increase/ [decrease] in fair value of biological assets 3.056m vs. [57.949m] +105.274%
H1 Finance [costs]/ income 17.049m vs. [6.844m] +349.109%
H1 Loss before taxation [21.527m] vs. [109.256m] -80.297%
H1 Loss for the period [15.069m] vs. [76.479m] -80.297%
H1 Loss per share [1.93] vs. [9.77] -80.246%
Cash and cash equivalents at 30th September 362.531m vs. 367.424m -1.332%
COMMENTARY ON THE RESULTS
With our crops on average 15% below last year we may have expected prices to rise to compensate for some of the crop loss. Aside from a brief period this has not materialised as enormous carry over of unsold stock from other tea producers negated a prolonged dry weather spike in prices. Therefore the double problem of lower crops lower prices and weak market forces too much supply and insufficient demand has resulted in the results provided for the past 6 months.
By general trade consensus our efforts to improve our own quality have been successful but our attempts to persuade buyers to benchmark our farms at a superior price level remains work in progress. If a buyers job is to procure the maximum amount of tea at the cheapest possible price it is not a challenge to achieve this in the current market. However we continue to strive to position our teas in the higher customer category.
PROSPECTS
We do not envisage much change going forward and it is unlikely we will make up our crop deficits in the months to March 2020 or that prices will rise.
A regrettably gloomy but unfortunately realistic picture.
Kapchorua Tea Kenya PLC FY 2019 results through 31st March 2019 vs. 31st March 2018
Kapchorua Tea Kenya PLC FY 2019 results through 31st March 2019 vs. 31st March 2018
FY Revenue 1.421265b vs. 1.429341b -0.565%
FY [Loss]/ profit from operations before tax [37.296m] vs. 214.165m -117.415%
FY [Decrease]/ increase in fair value of biological assets [125.012m] vs. 48.067m -360.079%
FY Finance income 10.632m vs. [4.994m] +312.895%
FY [Loss]/ profit before taxation [151.676m] vs. 257.238m -158.963%
FY Tax credit/ [charge] 26.011m vs. [90.833m] +128.636%
FY [Loss]/ profit for the year [125.665m] vs. 166.405m -175.518%
FY [Loss]/ earnings per share [16.06] vs. 21.27 -175.505%
Total Assets 2.033173b vs. 2.489043b -18.315%
Shareholders funds 1.467714b vs. 1.671619b -12.198%
Cash and cash equivalents at 31st March 485.098m vs. 141.961m +241.712%
COMMENTARY ON THE RESULTS
The Company reported an operating loss this year of Shs 38 million. The very large crops experienced to the end of 2018 repeatedly pushed the price of tea down as too much supply overtook demand with average prices falling by 25%. Extreme dry weather at the beginning of 2019 produced low crops, pushing up our fixed cost of production.
DIVIDEND
Despite the reported loss, the Directors considered shareholders persistent demand for a higher dividend rate in the years when the Company had exceptional good results and resolved to recommend a final dividend of KShs 10 per share to be paid out of the retained earnings. The recommended final dividend, subject to approval, will accrue to the members on the register at the close of business on 30th July 2019. Thereafter, the register will remain closed from 31st July to 2nd August 2019, both days inclusive.
PROSPECTS
High buffer stocks held by buyers prevailed through the long dry weather period and until the supply and demand equation readjusts, prices will remain weak, often below the cost of production.
Wet but cold weather has replaced the drought. However, until the demand side improves, the overall prospects for the year remain gloomy.
We shall continue to focus on crop and quality and managing our costs as we await improvement in the market.
Kapchorua Tea Kenya PLC H1 2019 results through 30th September 2018 vs. 30th September 2017
H1 Turnover 724.020m vs. 562.888m +28.626%
H1 [Loss] from operations before tax [44.463m] vs. [35.164m] -26.445%
H1 [Decrease]/ increase in fair value of biological assets [57.949m] vs. 10.466m -653.688%
H1 Finance [costs]/ income [6.844m] vs. 3.920m -274.592%
H1 Loss before taxation [109.256m] vs. [20.778m] -425.825%
H1 Loss for the period [76.479m] vs. [14.545m] -425.810%
H1 Loss per share [9.77] vs. [1.86] -425.269%
FY Earnings through 31st March 2018
FY Turnover 1.429341b versus 1.292123b
FY Profit [loss] from existing operations 214.165m [136.968m]
FY Increase in Fair Value 48.067m versus 59.791m
FY Profit before Tax 257.238m versus [72.323m]
FY Profit After Tax 166.405m versus [51.769m]
FY EPS 21.27 versus [6.62]
FY Dividend 10 a share
Conclusions
Cheap real cheap on an Earnings, NAV and dividend Pay Out Basis.
H1 Turnover 562.888m vs. 675.744m -16.701%
H1 [Loss]/ profit from operations before biological assets valuation [35.164m] vs. [60.501m] -41.879%
H1 Increase/ [decrease] in fair value of biological assets 10.466m vs. [62.328m] +116.792%
H1 Finance income/ [costs] 3.920m vs. [5.294m] +174.046%
H1 Loss before taxation [20.778m] vs. [128.123m] +83.783%
H1 Loss for the period [14.545m] vs. [89.686m] -83.782%
H1 Loss arising from operating activities [21.871m] vs. [46.057m] -52.513%
H1 Profit/ [Loss] arising from changes in fair value of biological assets 7.326m vs. [43.630m] +116.791%
H1 Loss per share [1.86] vs. [11.46] +83.770%
Total assets 2.168647b
Shareholders funds 1.377485b
Cash and cash equivalents at 30th September 171.440m vs. 53.533m +220.251%
Company Commentary
Tea production was low not only for the Group but across the Tea Industry due to severe drought conditions experienced in the first few months of the year. reduced supplies were met with good demand which boosted prices during the period under review.
Group reported a profit during the 6 months mainly from investment and other non operational activities.
Cost of production remains the biggest concern for the Group and the tea industry at large.
a much publicised strike orchestrated illegally by Union Leaders in the month of October and early November resulting in major losses which will affect performance for the next 6 months.
The Future therefore remains very unpredictable.
Conclusions
Market Cap is 594.62m versus Total Assets of 2.168b.
Big improvement but narrowly missed booking a profit.
FY Turnover 1.292123b vs. 1.209133b +6.864%
FY [Loss]/ profit from operations before tax [136.968m] vs. 106.411m -228.716%
FY Increase in fair value of biological assets 59.791m vs. 14.748m +305.418%
FY Finance income 4.855m vs. 30.284m -83.968%
FY [Loss]/ profit before taxation [72.323m] vs. 151.443m -147.756%
FY [Loss]/ profit for the year [51.769m] vs. 106.096m -148.794%
[Loss]/ earnings per share [6.62] vs. 13.56 -148.820%
Total Assets 2.030309b vs. 2.144587b -5.329%
Shareholders funds 1.415502b vs. 1.514215b -6.519%
Cash and cash equivalents at 31st March 185.255m vs. 120.172m +54.158%
Conclusions
They have not yet advised around the final Dividend.
NAV is a multiple of the share price
Kapchorua Tea reports H116 Earnings through 30.09.2016 versus through 30.09.2015
H1 Turnover 675.744m versus 525.742m
H1 [loss] Profit from Operations before biological assets valuation [60.501m] versus 43.870m
H1 [Decrease]/Increase in fair value of biological assets [62.328m] versus 50.634m
[Loss]Profit before Taxation [128.123m] versus 143.448m
[Loss] Profit after Taxation [89.686m] versus 100.414m
H1 EPS [11.46] versus 25.67
Commentary
Turnover increased by 29% due to higher crops.
In short the outlook is gloomy
Conclusions
NAV is 272.00 but in fact is a lot higher -
Buy on dips
FY Turnover 1.209133b vs. 1.073989b +12.583%
FY Profit from operations before tax 165.103m vs. 54.740m +201.613%
FY Increase [decrease] in biological assets 140.620m vs. [101.214m] +238.933%
FY Finance income 30.284m vs. 16.938m +78.793%
FY Profit [loss] before taxation 336.007m vs. [29.536m] +1,237.618%
FY Profit [loss] for the year 234.322m vs. [22.785m] +1,128.405%
EPS 29.95 vs. [2.91] +1,129.210%
Dividend 6.00
Shareholders funds 1.642441b vs. 1.427679b +15.043%
Cash & cash equivalents at the end of the year 120.172m vs. 46.844m +156.537%
Company Commentary
Higher Inventory Levels [unsold Tea] also reduced the cost of sales.
Final Dividend 6 shillings a share
Conclusions
Trades on a PE of 2.78
Its cheap
Kapchorua Tea Company Limited H1 2016 results through 30th September 2015 vs 30th September 2014
H1 Turnover 525.742m vs. 525.849m -0.02%
H1 Profit from operations before biological assets valuation 43.870m vs. 32.052m +36.87%
H1 Increase in fair value of biological assets 50.634m vs. 27.059m +87.12%
H1 Finance income 48.944m vs. 9.051m +440.76%
H1 Profit before tax 143.448m vs. 68.162m +110.45%
H1 Profit for the year 100.414m vs. 47.713m 110.45%
H1 Profit arising from operating activities 64.970m vs. 28.772m +130.34%
H1 Profit arising from changes in fair values of biological assets 35.444m vs. 18.941m +87.13%
H1 EPS 25.67 vs. 12.20 +110.41%
H1 Increase (Decrease) in cash and cash equivalents 147.094m vs. [171.083m] +185.98%
H1 Total Assets 2.111794b vs. 1.983239b +6.48%
Conclusions
A Cheap share on a Forward PE Calculation and on a Net Asset Value calculation.
Full Year Earnings through 31st March 2015 versus 12 months through 31st March 2014
Full Year Turnover 1.073989b versus 1.192483b
Full Year Profit from Operations before Tax 76.798m versus 107.970m
[Decrease]Increase in fair value of biological assets [101.214m] versus 69.811m
[Loss]profit before Taxation [29.536m] versus 182.079m
[Loss] Profit for the Year [22.785m] versus 125.991m
Full Year Earnings Per share [5.82] versus 32.21
Full Year Dividend 5 shillings a share
Conclusions
Tea Prices in this reporting Period a Known Known
Full Year Earnings through 31st March 2014
FY Turnover 1.192483b versus 1.353206b -11.877%
FY Profit from Operations before Tax 107.970m versus 161.143m -32.997%
FY Increase in Fair Value of Biological Assets 69.811m versus 81.808m
FY Profit Before Taxation 182.079m versus 255.753m -28.806%
FY Profit After Tax 125.991m versus 179.718m -29.89%
FY Earnings per share 32.21 versus 45.94 -29.886%
Full Year Dividend 5 shillings a share -33.333%
Company Commentary
Following the issue of the profit warning on 19th March 2014, the company recorded a profit of Shs 77 million from its operating activities, which is 37% lower than realised last year. The results whilst weak, remain a testament of our considerable effort to strive to cope with very weak markets and very significant price decline.
The weather was however favourable throughout the year and this, together with the support from our partners, the smallholders, contributed to the good crop levels achieved.
Fair value gain on biological assets is not equivalent to cash realised from operations and therefore not distributable to the shareholders.
Conclusions
notwithstanding a poor Innings in 20132014 this remains a very cheap share on a Net Asset Value Basis and on a PE Basis.
H1 2013 Earnings through 30.09.2013 versus H1 2012
H1 Turnover 523.390m versus 589.422m
Loss.Profit from Operations before Biological Asset Revaluation [15.331m]
38.968m
Increase in Fair Value of Biological assets valuation 124.299m versus
106.254m
H1 PBT 109.942m versus 151.624m
H1 PAT 76.959m versus 106.137m
H1 EPS 19.67 versus 27.13
PROSPECTS
As stated above we do not anticipate a change in market conditions prior to our year end in March 2014. The very weak market is therefore likely to negatively impact ou our next six months.
FY Earnings through March 2013 versus FY through March 2012
FY Turnover 1.353206b versus 1.406794b
FY PBT 255.753m versus 112.576m
FY PAT 179.718m versus 77.968m
FY EPS 45.94 versus 19.93
FY Dividend 7.50 a share
COMMENTARY ON THE RESULTS
The year under review saw reasonable weather conditions. There was rainfall throughout the year which ensured the crop levels remained high particularly in the last quarter of the year. This contributed significantly to the results thus increasing the profit from operating activities.
Fair value gain on biological assets is not equivalent to cash realised from operations and therefore not distributable to the shareholders.
Dividend
In view of the favourable results, the Directors recommend a final dividend of KShs 7.50 per share (2012 KShs 7.50) to be approved at the forthcoming Annual General Meeting. The final dividend if approved will accrue to those members on the register at close of business on 25th June 2013
The register will remain closed from 26th June to 2nd July 2013 both days inclusive with the dividend being paid thereafter net of withholding tax as applicable.
PROSPECTS
The weather conditions continue to be unpredictable where rainfall is unevenly distributed. In addition to the uncertain market demand,
foreign exchange fluctuations and the ever increasing costs of production, the impact of the new County Governments and the new Agricultural and Fisheries board may
adversely affect the performance and profitability of the company in the forthcoming financial period.
Conclusions
On a PE of less than 3 This is a very cheap share.
H1 2012 Earnings through Sep 2012 versus H1 Earnings through Sep 2011
H1 Turnover 589.422m versus 592.426m
Profit from Operations before Biological Assets Revaluation 38.968m
versus 140.509m
Increase in Fair Value of Biological Assets 106.254m versus 92.421m
H1 PBT 151.624m versus 267.665m
H1 PAT 106.137m versus 187.366m
H1 Earnings per Share 27.13 versus 47.90
Conclusions
They have made more money H1 than they did FY 2011.
Full Year through March 2012 versus Full Year through March 2011
Turnover 1.406974b versus 1.246636b +12.861%
Profits from Operations before Biological Assets Revaluation 99.063m versus 80.788m +22.62%
Increase in Fair Value of Biological Assets 6.154m versus 176.434m -96.51%
Profit Before Taxation 112.576m versus 268.393m -58.0555%
Profit for the Year 77.968m versus 187.005m -58.3%
Earnings Per Share 19.93 versus 47.80 -58.305%
Final Dividend of 7.50 per Share
Conclusions
Sharp Slide in the Biological Assets Revaluation which They warned about. Profits from Operations increased 22.62% and should be kept in mind.
6 Months to Sep 2011 versus 6 months to Sep 2010
EPS 47.90 versus 23.58 +103.138%
Conclusions
They Have made more money in the H1 2011 than they made in the entire Previous FY.
Turnover 1.246636b versus 1.130108b
Profit before Biological Gains 80.788m versus 190.064m
Biological Gains 176.434m versus 17.42m
Profit After Tax 187.005m versus 139.252m
EPS 47.80 versus 35.60
Final Dividend of 7.50 [Interim Dividend was 1.25]
Dividend Yield 8.495%
Conclusions
Its a cheap share on a PE of 2.154 and a Dividend Yield of 8.495%. I see Tea Prices remain well above their Historic Moving Average and the Currency also will remain on the Blackfoot.
New rules for State to own mining firms @BD_Africa
http://www.businessdailyafrica.com/news/New-rules-for-State-to-own-mining-firms/539546-3996850-1018tefz/index.html
Parliament has passed new operating rules the require all mining companies licensed in the past one year to cede a portion of their business to the government for free.
The rules, which do not apply to companies that were awarded mining licences earlier, give the government the right to a 10 per cent stake in all mining operations licensed after May 2016.
The State right to a free equity participation shall not apply to any right that has been granted to a holder to mine or exploit a mineral before the coming into force of the Mining Act, the Mining (State Participation) Regulations 2017 say.
The provision is different from the one that prescribes the formula for sharing mineral wealth between mining firms, national government, county governments and local communities.
The Mining Act, which came into force on May 27, 2016, entitles the government, through the yet to be formed National Mining Corporation, to acquire a 10 per cent free equity participation or free carried interest in the mining operations to which the licence relates. |
| 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: 17 Sep 2021
|
|
| |
|
|
| |
| |
30-JUN-2021 :: Full Year Results |
| |
Audited Results for the Year Ended 31st March 2021.
Download N.S.E Announcement
|
| |
|
| |
24-NOV-2020 :: Half Year Results |
| |
Unaudited Summarised Results for the Six Months Ended 30th September 2020.
Download N.S.E Announcement
|
| |
|
|
|
| |
|
|
| |
|
|
| |
|
|
|
| |
|
|
|
|
