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Firm says profits for the tea -sector in general have gone down due to the continued appreciation of the shilling against the dollar/FILE

Kenya

World tea prices boost Kakuzi profit

Firm says profits for the tea -sector in general have gone down due to the continued appreciation of the shilling against the dollar/FILE

NAIROBI, Kenya, Aug 31 – Local agro-based firm Kakuzi Limited has announced an 87.2 percent increase in net profit for the first half of 2012 to Sh71.2 million up from Sh38 million in same period last year.

The firm says the increase was due to low tea production which led to higher prices locally and even internationally. Profit before tax went up to Sh116.5 million from Sh59.6 million in the previous period last year.

However, the firm says profits for the tea -sector in general have gone down due to the continued appreciation of the shilling against the dollar and other key foreign currencies.

Total sales in the six months period for the firm went down to Sh336 million compared to 394 million in the same period in 2011.

Total value of the current assets for the company dropped to Sh263 million compared to Sh330 million in the same period last year. Earnings per shares were Sh4.46 up from Sh4.35 in the first half of 2011.

The board of directors has recommended zero interim dividend for the shareholders.

Meanwhile Kakuzi was on Friday to complete the transaction in the sale of the remaining 50.5 percent stake of its subsidiary — Siret Tea Company Ltd (STCL).

Siret Outgrowers Empowerment and Produce Company Ltd (SOEP) formerly known as Eastern Produce Kenya (EPK) Outgrowers Empowerment Company Project issued a notice to buy the remaining 50.5 percent of the STCL shares as part of the framework agreement signed in 2007.

The transaction has already received approval from the Competition Authority of Kenya, and as a result STCL will cease to be part of the Kakuzi group from tomorrow September 1, 2012.

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