Sasini bounces back to profitability in its half year results

Sasini bounces back to profitability in its half year results

Listed agricultural firm, Sasini PLC has bounced back to profitability during the half year period ended March 31, 2021. The firm has reported a pretax profit of KSh. 191.861 million from a pretax loss of Ksh. 10.140 million posted during a similar half year period in 2020.

Sasini’s revenue dropped by 2.2 percent to Ksh. 2.024 billion during the half year period under review from Ksh. 2.070 billion. The drop in turnover was recorded against the backdrop of disruption in the supply chain, reduced demand and the depreciation of the Kenyan Shilling.

Adding to the company’s bottom line was a 248.4 percent growth in its finance income to Ksh. 30.664 million.

However, the firm’s management says the company’s results were buoyed by improved coffee prices, good weather conditions and cost containment measures within the group. In its commentary on Sasini’s half year results, “Coffee and tea production volumes were within expectations, but the global slowdown of the macadamia business and the late start of the avocado season meant that the first six months results relied heavily on tea and coffee businesses. The impact of mechanization of tea harvesting continues to be a key driver in the cost containment measures of the company and the return to profitability despite the low tea prices realized during the period.”

Going forward, Sasini’s management sees a bright outlook for the remaining six months of the year “…with the onset in April 2021 of the avocado season and macadamia nuts shipment that are expected to contribute to the next six months results.”

The company also expects tea prices to stabilize or improve slightly despite the variations currently being witnessed in the market. “The good weather conditions prevailing will support both the tea production volumes and the coffee early crop to achieve expected production volumes as well as give the necessary support for our avocado and macadamia yields.”

Following the company’s half year turnaround, Sasini’s board of directors has proposed the payment of an interim dividend of 50 cents per share.

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