Kenya: Sasini profit surges to Sh573m on higher sales

Agricultural firm, Sasini grew its net income 45.5 times to Sh573.2 million in the year ended September, helped by higher sales and cost containment measures that boosted margins.

The Nairobi Securities Exchange listed firm had made a net profit of Sh12.6 million the year before.

Sasini declared a final dividend of Sh0.5 per share which will be payable on March 15 to shareholders who will be on record as of February 22.

The final dividend will raise the company’s total distribution for the year to Sh1 per share.

The firm’s revenue increased by Sh1.1 billion to Sh5.2 billion in the review period when it also benefitted from reduced costs.

“The group’s performance showed resilience evidenced in increased turnover compared to the prior year driven by a combination of improved prices in some commodities, depreciation of the Kenya Shilling, good weather conditions for growing resulting in higher coffee volumes, and cost containment measures within the group,” Sasini said.

The local currency depreciated to trade at lows of 111.5 units to the dollar in the review period, lifting the earnings of exporters.

Sasini did not give a breakdown of its expenses but noted that it continues to implement mechanization of tea harvesting, a strategy it says is a “key driver in the cost containment measures of the company and the return to profitability.”

“Tea production volumes were within expectations. The coffee business had a strong performance based on high global prices for coffee, reduced supply due to growing disruptions in Brazil and Vietnam and good growing conditions in Kenya,” Sasini said.

“The macadamia business recovered in the second half of the year as global markets opened up on the back of relaxation of the containment measures for the Covid19 pandemic.”

The company added that the avocado business registered good harvests and increased demand during the year, but its performance was affected by increased competition from competitor growing regions in South America.