COMMENTARY ON THE RESULTS FOR THE YEAR ENDED 30.09.2016
The company achieved tea production during the year of 11,108 Tons of made tea compared to 8,578 Tons in the previous year. The average price realized for tea marginally increased to USD 1.89/kg compared to USD 1.87/kg in the previous Financial Year. Our Coffee estates produced 944 Tons of Coffee compared to 993 Tons in the previous year. The drop in the volume is attributed to the poor rainfall during the first part of the year. The average price realized for coffee was USD 4.57/kg compared to USD 4.55/kg in the previous year.
Consequently the Group turnover increased from shs 2,786 million last year to shs 3,570 million for the year ended 30 September 2016. This also resulted in an increase in gross profit from shs 733 million last year to shs 974 million for the year ended 30 September 2016.
However the net profit for the year of shs 761.85 million is lower than the previous year profit of shs 1,101 million due to : Profit arising from restructuring of non performing assets contributed shs 422.7 million compared to shs 830.7 million last year.
An increase in the tax charge for the year to shs 258.9 million compared to a credit of shs 61.9 million last year. This is arising from derecognition of a deferred tax asset in one of the subsidairy company.
In view of the performance, the Board approved the payment of a second interim dividend of 125% for the year ended 30th September 2016, payable less withholding tax, where applicable, on or about 31st January 2017.
Annual General Meeting
The annual general meeting of the members will be held at Kamundu Estate, Kiambu on Friday, 3rd March 2017. Formal notice of the meeting will follow.