Sasini PLC reports US$4.3M loss in 2024 amid rising costs 

KENYA – Sasini PLC, a leading Kenyan agribusiness firm, has reported a Kes 562.9 million (US$4.34) loss after tax for the financial year ending September 2024, a stark contrast to the Kes 542.3 million (US$4.2M) profit recorded in 2023.  

This represents a 203.7 percent decline, attributed to high production costs, depressed commodity prices, supply chain disruptions, and adverse foreign exchange impacts. 

Despite a 20.4 percent increase in revenues to Kes 6.9 billion (US$53.3M), up from Kes 5.7 billion (US$44.0M) in 2023, the company’s earnings were significantly eroded by a 45.1 percent surge in operational costs.  

The cost of sales rose sharply to Kes 6.3 billion (US$48.67M) from Kes 4.4 billion (US$33.99M) in the previous year. 

Sasini’s tea, avocado, and macadamia segments underperformed during the year, with only the coffee trading unit posting marginal profits.  

A persistent tea glut at auction markets, driven by high green leaf production, led to depressed tea prices. The company’s production costs were further exacerbated by increased fertilizer and power costs, as well as lower production volumes. 

“Due to the tea glut in the auction, we were unable to secure long-term contracts with major private buyers as prices remained below production costs,” Sasini stated in its full-year report.  

This challenge was compounded by the minimum reserve prices set in 2022, which were only suspended in October 2024 by the East African Tea Trade Association. 

The global nut market also presented challenges for Sasini, with demand for macadamia nuts declining due to a mild recession in major economies, particularly the United States, which is a key market. 

Overproduction and stockpiling of tea during peak seasons contributed to a decline in global tea prices. 

Recently, the Tea Board of Kenya (TBK) reported Kenya’s tea export volumes experienced a 20.8 percent rise in the first ten months.

Adverse weather conditions in early 2024 further disrupted production cycles, affecting crop quality and volumes. Additionally, tensions in the Middle East caused disruptions to shipping routes, including the Suez Canal, leading to delays in exporting perishables such as avocados. 

As part of its business reforms, Sasini closed several revenue and profit lines, increasing costs in the coffee value chain. 

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