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Kenya

Rea Vipingo untouched by downturn

NAIROBI, Kenya, May 28 – Agricultural Company Rea Vipingo has announced a 26.4 percent increase in after tax profit for the period ending March 2009.

Un-audited results for the company indicate that profit during the period rose from Sh62.1 million to Sh78.5 million.

A statement from the company attributed the increase in profit to the fact that the company had managed to ship the same volumes of fibre during the period despite the global economic downturn.

“Prices for sisal fibre which had reached an all time high before the downturn have over the past six months declined. Fortunately during this period the US dollar, the currency in which we trade, has been much stronger against the local currencies,” the statement read further.

Operating income for the company rose from Sh323 million to Sh330 million for the period.

Turnover for the company went up by Sh19 million.

The company is forecasting challenging times ahead in the second half of the year, due to poor rains that could impact negatively on production for the remaining part of the year.

“Until the recession ends in all markets we do expect that sisal fibre prices will remain under some pressure and therefore unless the shilling weakens further, the second half of the year may prove to be less profitable,” the company statement read in part.

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