Agribusiness company Kakuzi PLC has reported a KES295.5M net profit in its six months to June trading period, reflecting a 14.9 percent dip compared to KES347.51M realized during a similar period last year largely due to lower avocado prices in global markets.

In an investor update on Wednesday, Kakuzi said its flagship avocado unit realized KES395 million in half-year profit, which was KES556 million less compared to the KES951 million posted in 2024, "primarily because of a lower crop valuation this year".

Kakuzi Managing Director Chris Flowers said the firm has adopted strategic operating strategies to facilitate growth within a challenging operating environment.

“The year-to-date trading in our two core crops is in line with expectations. The international avocado market has been well supplied, with price levels reflecting this situation,” Mr. Flowers said. 

Shipping challenges

He added, “The earlier experienced shipping route challenges are also beginning to stabilize with an increasing number of voyages returning to the Red Sea routing.”

At the close of the half-year reporting period, the company disclosed it had exported 165 containers or 801,840 cartons of avocados primarily to European markets, a destination which is also receiving fruit from Peru, South Africa and Colombia farmers.

The Nairobi Securities Exchange-listed company's Macadamia division recorded a half-year profit of KES319 million, up from KES32 million posted within the same period last year. 

What's more, the firm’s blueberry production turned profitable, posting a half-year net earnings of KES13M compared to a KES17M loss suffered for the same period last year.

“This (blueberry) business venture is now profitable,” Mr. Flowers said reiterating that the Board remains committed to continuing diversification of the company’s operation and maintain its focus on responsible business models. 

Land grabs

“Our operating mandate is firmly rooted in our purpose of ‘Growing Together’, lifting others as we grow through a process of meaningful stakeholder engagement”, he said.

However, he raised concern that Kakuzi Plc is grappling with land grabs associated with unscrupulous individuals.

“The actions have occasioned massive environmental damage and raised security tensions among the local community. We are, however, pursuing legal remedies and redress available to us, to secure shareholder rights and avoid attempts to expropriate or erode the value of our shareholder assets,” Mr. Flowers assured Kakuzi shareholders.

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