KENYA – Kenyan fresh food producer and exporter Kakuzi Plc, has reported a 75% rise in half year profit to Ksh 341.3m(US$2.85m) from Ksh 194.6m (US$1.62m) on the back of increased exports and a diversified portfolio in the six months ended June 2022.
Its profit before tax showcased a 60% jump from Ksh 276.7 million (US$2.31m) posted within the same period last year to Ksh 494.7 million (US$4.13m).
The performance was inspired by increased sales which topped the Ksh 1.02 billion (US$8.5m) mark up from Ksh 888.95 million (US$7.42m) booked within the same period last year.
This is attributed to higher income from exported commodities i.e., avocado and macadamia nuts and product diversification efforts which have seen it step up domestic sales of macadamia nuts and blueberries.
Kakuzi Managing Director Mr Chris Flowers, “The prices for early season avocados were very poor, but they have slowly recovered as the months progressed. Having fruit in the market for as many months of the year as possible has helped shield us from the poor early season market.”
“As the Avocado harvest season comes to a close next few months, we are anticipating higher avocado exports, this ‘ON’ year cropping cycle while our diversification strategy continues to gain steam,” he added.
Commenting on the half-year results, Kakuzi Chairman, Mr Nicholas Ng’ang’a, noted that the complex international markets, an increasing cost base for many of the firm’s key inputs, and a worldwide consumer spend squeeze may affect the full-year results, necessitating the diversification strategy rollout.
“Diversification of income streams remains a key strategic goal for the Company. We have embarked on this for the international and domestic market with a range of new and value-added products.
“Currently, we have two main export products, avocados and macadamia, but through strategic investments, we believe that blueberry production will become the third pillar,” Ng’ang’a said.
As part of its strategic goals, Kakuzi recently entered into a partnership with Driscoll’s, world’s leading marketer of berries, to grow the local and export volumes of blueberries.
The company also anticipates higher income from avocado exports as it commenced export of fresh avocados to China, a flourishing market in the sector.
The agribusiness firm is also expanding the scope of its sustainable wood products into a higher-value market and increasing the sales volume remains a crucial short-term goal as the market becomes increasingly aware of the benefits of using sustainably grown timber products.
The firm’s livestock diversification is also progressing well with a build-up of its goat herd in the race to become a commercial goat meat producer and capitalise on the enormous value addition potential in this sector.
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