Kakuzi dividend up 9 percent on higher avocado sales
Fruit exporter Kakuzi PLC has raised its dividend payout by 9 percent to Kes24 from Kes22 as net profit went up by 164 percent to Kes845.8 million from Kes319.7 million on higher avocado sales in the year ended December 2022.
The dividend will be paid later by June 15 to shareholders on the grower’s books on the close of business May 31. The proposed dividends round off to Kes470.4 million from Kes431.2 million that was paid in 2021.
Kakuzi Plc Managing Director Chris Flowers has attributed the earnings growth to increased production volumes of quality export-grade avocado as well as other superfoods and products by the Murang’a-based agricultural company.
The earnings, underpinned by total sales revenue amounting to Kes4.434 billion, up from Kes3.296 billion posted the previous year, Mr Flowers said, were also boosted by the firm’s strong performance in forestry, livestock, and blueberry business segments.
“The Kakuzi Plc market and product diversification strategies complimented by the enhanced environment, social and corporate governance commitments are paying off, as the trading results indicate. The diversification efforts help to mitigate market and production risks associated with agri-business,” Mr Flowers explained.
Read also: Kakuzi enters export deal to double China avocado market
Last month, the Nairobi Securities Exchange-listed company secured a partnership with a Chinese horticultural produce importer Dalian Yidu Group to step up export volumes to the Asian market.
Kakuzi has been working with China-based agent Halls Fresh Produce to market its produce in the populous Asian market that imported roughly 50,000 metric tonnes of avocado in 2021.
In 2022, Kenya’s avocado shipments to Beijing grew past two million kilograms, underscoring the increasing significance of the Asian market to Kenya. Kenya shipped over $50 million worth of both fresh and frozen avocados to China last year and players in the sector project to double the exports this year.
“The first Kakuzi Hass Avocado export load to China was sold-out some weeks ago, and we currently don’t have any stocks in the market. However, we hope to deliver another quality load of Hass Avocados in October, and the necessary orchard preparations are underway as per the specific Chinese protocols,” Mr Flowers reported in September, 2022.
