KENYA – Agricultural firm Kapchorua Tea saw its net profit for the half year ended September drop 38 per cent, taking a hit from lower valuations of its bushes.
The company’s net earnings stood at Sh47.7 million in the period compared to Sh76.9 million a year earlier.
The value of its tea bushes, dubbed biological assets, in its profit/loss statements, dropped 78.2 per cent to Sh27 million.
This led to the overall profit drop, despite Kapchorua posting an operating profit of Sh32 million, reversing an operating loss of Sh15.3 million the year before.
The company said its sales rose marginally to Sh525.8 million, attributing it to a growing glut that has depressed tea prices.