KENYA – Williamson Tea, a Kenyan listed tea manufacturer has posted a net profit of Ksh33.9 million (US$308,000) in the half-year period that ended on 30th September 2020, a 151% increase from the loss of Ksh65.9 million (US$308,000) registered in September 2019.
According to its financial earnings report, the company recorded Ksh1.9 billion (US$17.28m) in revenues in the period under review, up from Sh1.3 billion (US$11.8m) of 2019, reflecting a 45% rise.
The firm attributes the good performance to favourable weather and strong support from smallholder tea farmers in the country.
“In spite of record low prices in the market place due to high supply-side and financial uncertainties attributable to the coronavirus pandemic, the group has managed a modest profit through diligent selling, quality controls and prudent cost saving,” Williamson further indicated.
Despite the good performance in the first half of the year, the company has issued a pessimistic forecast for the full year ending March 2020.
“The outlook remains very difficult and it is a credit to our management and workforce that some profit has been recorded thus far,” said the company.
The agriculture company cultivates, manufactures and sells tea in Kenya and exports to international markets.
It operates tea farms in Changoi, Kaimosi, Kapchorua and Tinderet producing well-known brands such as Duchess Grey, Traditional Afternoon, Lifeboat Tea, Kenya Earth, Green Earl Grey, Purple Blush, Mint Garden, Earl Grey Purple, Purple Matcha and Green Matcha.
“In spite of record low prices in the market place due to high supply-side and financial uncertainties attributable to the coronavirus pandemic, the group has managed a modest profit through diligent selling, quality controls and prudent cost saving.”Williamson Tea
Kenya tea exports decline by 4%
Williamson manged to weather the COVID-19 storm at a time when Kenya’s tea exports in the eight months to August dropped by 14 million Kgs compared with the same period last year as the demand for the commodity in the world market remains suppressed.
Data report from the Tea Directorate shows that export volumes dropped to 323 million kilogrammes in the review period from 337 million of 2019, signifying a 4% decline.
The decline in export volumes highlights the effects that the coronavirus has had on international trade. “Notably, access to some markets is still a challenge due to the impact of Covid-19 pandemic on commodity distribution and trading across the globe,” said the directorate.
This was despite the country’s production increasing by 33.59% reaching 375.75 million kilo grams (Kgs) against 281.26 million Kgs recorded during the same period of 2019.
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