Agricultural commodity exporter Sasini records full year profit gain on back of favourable market conditions

KENYA – Sasini, Kenyan producer and exporter of agricultural produce, has reported a rise in full year revenue in the period ended September 2021 to Ksh. 5.26 billion (US$46m) from Ksh. 4.14 billion (US$36m) of 2020.

According to the Nairobi Securities Exchange listed firm, the financial year began on a high note despite the negative disruptions caused by the continuing COVID19 pandemic.

Disruptions were witnessed mainly in the supply chain, outgoing logistics and reduced demand.

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

Tea production volumes were within expectations while the coffee business had a strong performance based on high global prices for the commodity.

Also, reduced supply of coffee in the market due to growing disruptions in Brazil and Vietnam favoured the business which realised bumper harvest boosted by good growing conditions in Kenya.

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.

While 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.

Its full year profit before tax improved to Ksh 768.10 million (US$6.77m) compared to Ksh. 41.49 million (US$370,000) in the prior year in a difficult business environment which is a remarkable achievement.

The Group, therefore posted a profit after tax and non -controlling interest including the changes in value of biological assets) of Ksh 573.20 million (US$5.05m) from prior year’s profit of Ksh. 12.61 million (US$110,000).

This comprises of a profit from operating activities of Ksh 438.06 million (us$3.86m) and Ksh 129.78 million (US$1.14m) gains from changes in the value of biological assets.

Sasini revamps local business

Despite Sasini’s operations being majorly export based, the company has recently been growing its local business, by introducing new packaging for its products to enable them stand out and drive purchase decision making by customers.

The move was triggered by the firm’s quest of matching the quality of the product inside with consumer perception at first glance.

Some of the brands that are sold locally through its Sasini Retail Division which include Sasini Gold Tea (Pure Grade Highland Tea), Sasini Classic Tea (Fine Blended Highland Tea), Sasini Premium Tea, Sasini Instant Coffee, Sasini Kahawa Kamili (Ground Coffee) and Sasini Kahawa Number 1.

Other than upgrading the packaging, the company is revamping its retail business in a bid to promote consumption of the country’s leading export commodities.

To this end, the processing company is availing its products through a vast network of stores in the country i.e., grocery chains, supermarkets, independent consumer outlets, convenience stores and kiosks.

The diverse nature of these outlets gives them an opportunity to spread their products easily to the consumers they seek.

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