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Kakuzi PLC released its unaudited interim financial statements for the six months ended 30 June 2023, reporting a profit before income tax of Shs 171.1 million and a profit for the period of Shs 117.5 million, with basic earnings per share of Shs 5.99. For the period, avocado profits were Ksh 654.8 million, while the macadamia business recorded a sectoral loss of Ksh 329 million. The company's Directors did not recommend the payment of an Interim Dividend.
| Date | 25 Aug 2023 |
| Time | 07:00:02 |
| Category | Results |
| ID | 3899K |
KAKUZI PLC
EXTRACT FROM THE INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2023
The unaudited results for the Kakuzi Group for the period of six months to 30 June 2023 and the comparative figures for the previous year are as follows:
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Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income |
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30 June 2023 |
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30 June 2022 |
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Shs'000 |
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Shs'000 |
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Sales |
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873,155 |
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1,026,492 |
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Profit before fair value gain in non-current biological assets and income tax |
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149,528 |
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471,842 |
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Fair value gain in non-current biological assets |
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21,591 |
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22,826 |
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Profit before income tax |
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171,119 |
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494,668 |
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Income tax expense |
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(53,621 |
) |
(153,398 |
) |
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Profit for the period |
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117,498 |
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341,270 |
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Other Comprehensive Income: |
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Items that are not reclassified to profit or loss: |
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Remeasurement of post-employment benefit obligations (net of tax) |
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- |
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- |
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Total comprehensive income |
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117,498 |
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341,270 |
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Shs |
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Shs |
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Earnings per share (Shs): |
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Basic and diluted earnings per ordinary share |
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5.99 |
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17.41 |
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Condensed Consolidated Statement of Financial Position |
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Audited |
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30 June 2023 |
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30 June 2022 |
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31 December 2022 |
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Shs'000 |
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Shs'000 |
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Shs'000 |
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EQUITY |
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Share capital |
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98,000 |
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98,000 |
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98,000 |
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Other reserves |
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32,815 |
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37,991 |
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32,815 |
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Retained earnings |
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5,465,134 |
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5,313,502 |
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5,347,636 |
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Proposed dividends |
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- |
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- |
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470,400 |
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Total equity |
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5,595,949 |
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5,449,493 |
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5,948,851 |
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Non-current liabilities |
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1,203,079 |
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1,098,845 |
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1,187,237 |
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6,799,028 |
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6,548,338 |
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7,136,188 |
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REPRESENTED BY |
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Non-current assets |
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4,097,646 |
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3,999,063 |
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4,089,669 |
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Cash and cash balances |
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239,675 |
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840,966 |
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1,408,744 |
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Other current assets |
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2,842,579 |
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2,259,249 |
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1,983,022 |
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Current liabilities |
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(380,872 |
) |
(550,940 |
) |
(345,247 |
) |
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Net current assets |
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2,701,382 |
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2,549,275 |
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3,046,519 |
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6,799,028 |
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6,548,338 |
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7,136,188 |
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Condensed Consolidated Statement of Cash flows |
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30 June 2023 |
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30 June 2022 |
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Shs'000 |
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Shs'000 |
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Cash and cash equivalents at the beginning of the period |
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1,408,744 |
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1,656,219 |
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Net cash used in operating activities |
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(597,169 |
) |
(188,424 |
) |
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Net cash used in investing activities |
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(159,841 |
) |
(225,311 |
) |
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Net cash used in financing activities |
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(470,400 |
) |
(431,201 |
) |
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Effect of exchange rate differences on cash and cash equivalents |
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58,341 |
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29,683 |
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Decrease in cash and cash equivalents |
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(1,169,069 |
) |
(815,253 |
) |
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Cash and cash equivalents at the end of the period |
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239,675 |
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840,966 |
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Condensed Consolidated Statement of Changes in Equity |
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Share capital |
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Other reserves |
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Retained earnings |
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Proposed dividends |
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Total Equity |
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Shs'000 |
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Shs'000 |
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Shs'000 |
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Shs'000 |
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Shs'000 |
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At start of the period |
98,000 |
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32,815 |
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5,347,636 |
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470,400 |
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5,948,851 |
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Profit for the period |
- |
|
- |
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117,498 |
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- |
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117,498 |
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Dividends paid |
- |
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- |
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- |
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(470,400 |
) |
(470,400 |
) |
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At end of period |
98,000 |
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32,815 |
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5,465,134 |
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- |
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5,595,949 |
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KEY HIGHLIGHTS
· Avocado profits have more than doubled in 2023 to Ksh 654.8 million, up from Ksh 288.6 million in 2022
· Global Macadamia glut persists leading to a Kshs 329 million sectoral loss for the macadamia business
· Recovery expected as Kakuzi Macadamia domestic market retail sales efforts doubled up to mitigate international market risks
· Pretax profit down by 65% to Ksh 171.1 million from Kshs 494.7 million
· Avocado exports to China up on last year.
TRADING PERFORMANCE
The half-year trading period for the financial year 2023 are in line with our expectations given the challenging macadamia markets. As highlighted at the Annual General Meeting, we expect the global macadamia glut situation to persist throughout the balance of 2023 financial year and may be into 2024.
In 2022 the half year profits for the macadamia business were posted at Ksh 339 million. This year the situation has reversed to a loss of Ksh (329) million. The disappointment is that in our biggest markets of China, Japan and the USA, the same quality macadamia nut kernels are now selling for less than half the price recorded during the same period last year even as production volumes from all source markets continue to grow.
We remain committed to a shared prosperity business model that prioritizes all our stakeholder needs. Growing our business in a sustainable manner, actively implementing our Kakuzi, Community Partnerships, answering the call for climate action and using best practices in all we do to promote our values remains our focus.
The Directors do not recommend the payment of an Interim Dividend.
BY ORDER OF THE BOARD
NICHOLAS NG'ANG'A
CHAIRMAN
24 AUGUST 2023