Sasini profit surges to Sh1.2 billion on better produce prices
Agribusiness company Sasini’s annual earnings more than doubled to Kes1.17 billion in the year ended September 2022, from Kes 573.2 million previously.
The Nairobi Securities Exchange-listed firm attributed the strong showing to high-quality products that fetched better prices, precipitating record turnover compared to the previous trading period.
In the period, revenue jumped 36.3 percent to Kes7.34 billion from Kes5.39 billion in 2021 as the company’s main business tea, coffee and macadamia performed exceptionally well despite dampers such as high inflation, prolonged drought, and the Russia-Ukraine war which increased cost of trade due to higher import bills, fuel and raw materials.
“The cost of sales increased to Kes5.54 billion against the prior year’s Kes4.49 billion, a 23.3 percent increase,” Sasini said.
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“We managed to grow revenue at a faster pace than costs of sales which is exceptional towards profit generation,” it added.
Sasini directors, however, did not recommend the payment of a final dividend despite high profit position. The company paid an interim dividend in July 2022 (Kes1 per share), which amounted to Kes288.05 million.
In the immediate term, Sasini’s business will keep contending with familiar headwinds such as geopolitical risks, climate change, economic downturns, rising inflation and other challenges that are still a threat to doing business in Kenya.
As a parting shot, the management pledged to continue exploring “new lines and ideas in a bid to fit in with the changing business environment to expand and enhance shareholder value.”
Sasini grows and processes tea, coffee, avocado, and macadamia nuts. The agribusiness company also runs dairy operations and value addition of the related products for local retail and export markets, including tea warehousing facilities in Mombasa city.