COMMENTS ON THE RESULTS (UNAUDITED) FOR THE TEN MONTHS PERIOD ENDED 31ST JULY, 2015
The results for the ten month period ended 31st July, 2015 indicate an increase in profitability in operating activities and restructuring of non performing assets to a profit after tax of Kshs.649.4 million compared to a profit of Kshs.65.3 million in the same period in the previous year. The year under review has been characterised by a biting drought that severely affected the operations of the company in the first half of the financial year of the company and continued into the third quarter. The production volumes in both tea and coffee divisions dropped considerably.
The improvement in the tea price in the second half has contributed to the recovery in profitability. The coffee price however dipped in this half due to the lower quality of the coffee produced after the drought. During the period, the restructuring of non-performing assets reported in our accounts of 2013-2014 financial year, which included the sale of Wahenya Estate and part of Mweiga Estate was completed, both of these parcels of land have been persistently loss making for six years running.
This sale was part of Management strategy to unlock these funds for investment in more productive divisions of the Company. Successful disposal of these assets in the second half yielded considerable contribution to the bottom line. The loss from changes in the valuation of biological assets for the period was driven mainly by the considerable loss of production volumes in tea and mitigated by the gains from the higher realization in tea prices. The low realizations in coffee prices have also affected this valuation.
In view of the above performance, the Board has declared the payment of an interim dividend of Kshs 1.00 per share (Kshs 228.055 million) (2014: Kshs 57.1 million) payable less withholding tax, where applicable on or about 15th September, 2015 to Members on the register at close of business on 31st August, 2015.
The Company’s register will remain closed for one day on 31st August, 2015.
Savanna The Coffee Lounge now open at:-
– Sasini House, Loita Street - Upper Hill next to General Accident House
– United Nation Recreation Centre, Gigiri
– Sameer Business Park
For more info click the download link below