Kakuzi PLC has posted a Sh341.3million half-year net profit, a 75 percent growth from Sh194.6 million posted within the same period last year.
The performance was attributed to increased sales of the firm’s avocado and macadamia crops and steadily growing revenues from its market and product diversification efforts.
The firm’s total sales grew to Sh1.02 billion up from Sh888.95 million booked within the same period last year.
Within the trading period under review, Kakuzi Managing Director Chris Flowers disclosed that the early season avocado prices on the international market had opened at a poor level but continued to recover at the close of the six months.
“Having fruit in the market for as many months of the year as possible has helped shield us from the poor early season market. In addition, entry into China is vital for Kenya. Market prices may be similar to European levels, but such a high volume additional market gives us a choice and diversified sales options,” said Flowers.
Flowers noted that as the avocado harvest season comes to a close in the next few months, they anticipate higher exports.
As part of the firm’s revenue, product, and market diversification strategy, the domestic sales for macadamia and blueberries have been stepped up while avocado exports to China have just started.
Commenting on the half-year results, Kakuzi Chairman, Nicholas Ng’ang’a, noted that the complex international markets, an increasing cost base for many of the firm’s key inputs, and a worldwide consumer spend squeeze may affect the full-year results, necessitating the diversification strategy rollout.
“Diversification of income streams remains a key strategic goal for the Company. We have embarked on this for the international and domestic market with a range of new and value-added products. Currently, we have two main export products, avocados, and macadamia, but through strategic investments, we believe that blueberry production will become the third pillar,” Ng’ang’a said.
Recently, The Listed agribusiness firm announced plans to venture into the international blueberry export market last week after signing a partnership with leading berries marketing firm Driscoll’s to grow its local and export volumes.