The year ended 30th September, 2017 was fraught with its fair share of challenges and apprehensions ranging from
prolonged adverse weather conditions to heightened political activities due to the extended electioneering period.
Despite the uneasy environment the financial performance of the Company was encouraging.
The Group’s overall turnover increased by 18% to Kshs 4.2 billion against Kshs 3.6 billion in the prior year. This increase in revenue was mainly due to stronger international tea prices. Coffee prices reduced slightly and remained sluggish compared to the previous year, due mainly to huge inventories in the consuming countries.
The Group posted a profit after tax of Kshs 339.4 million for the year compared to a restated profit of Kshs 576.9 million in the prior year. This year’s profit included a gain of Kshs 16.9 million (prior year Kshs 422.7 million) on the disposal of an investment. The changes in fair values of biological assets increased in the year to Kshs 81.7 million (prior year restated loss of Kshs 177.9 million) as a result of the implementation of the changes in the IAS 41- Agriculture and IAS 16- Property, Plant and Equipment. Sasini has elected to measure bearer plants at cost.
Despite the effects of the severe weather conditions in the early part of the year, there was an improvement in tea
production to 11.2 million kgs against the production for the prior year of 11.1 million kgs while coffee production was 851 tons compared to 944 tons in the previous year. The dairy sector was also affected by the drought but remained marginally profitable during the financial year.
The Company continued to implement its diversification strategy during the year with the introduction of new lines of
business involving Macadamia nuts and Avocado fruit processing. Construction of a Macadamia nut processing factory
is now at an advanced stage with the commissioning expected in April 2018. Avocado fruit processing and export started off well in its maiden year of operations. Both these new initiatives carry a lot of promise and the Board is optimistic that they will post good returns after gestation.
An interim dividend of 25% (Kshs0.25) per share (2016 – 25%: Kshs 0.25) was paid to shareholders on 4th July 2017.
The Directors recommend the payment of a second interim dividend of 75% (Kshs 0.75) per share (2016 – 125%: Kshs
1.25) for the year ended 30th September 2017, the total dividends for the year amount to Kshs 228 million. The register will close on 6th February 2018 and the second interim dividend will be paid, less withholding tax where applicable, on or about 21st February 2018.