NAIROBI, Kenya, Aug 2 – Williamson Tea Kenya and Kapchorua Tea have bounced back to profitability on the back of good rains, higher output and improved prices.
Williamson Tea has registered a Sh502 million profit in the full year ended March 31, 2018 compared to a Sh261 million loss posted same period last year.
The company’s management attributed the improved performance to high crop volume as a result of favorable weather and improved prices for the better part of the financial year.
Turn over went up to Sh3.9 billion compared to Sh3.4 billion recorded same period last year.
Going forward management says outlook of a bumper year is probably inaccurate adding that the tea company remains cautiously optimistic that global demand for tea will not collapse.
The board of directors has recommended a final dividend of 20 cents per share.
Meanwhile, Kapchorua Tea has also gone back to profitability making Sh166 million in the period under review compared to a net loss of Sh51 million.
Turnover hit Sh1.4 billion in the period under review compared to Sh1.2 billion turnover same period previous year.
“The recommended final dividend of 10 cents, subject to shareholders’ approval, will accrue to the members on the register at the close of business on 21st September 2018,” the firm said in the statement.
Kenya’s growth in 2018 has mainly been driven by a recovery in activities of Agriculture as well as improved output in Wholesale and Retail Trade, Manufacturing, and Real Estate sectors.
In the first quarter of 2018 the economy expanded by 5.7 per cent compared to 4.8 per cent in a similar quarter of 2017.
“We are having a good year so far; there is a sustained improvement in economic fundamentals, there’s a strong pickup in economic activity and favourable weather conditions among other gains,” Central Bank of Kenya Governor Patrick Njoroge told a press briefing ion East Africa’s largest capital city on Tuesday.