Kakuzi Plc has registered a profit before tax amounting to Ksh 507 million in half-year to June 30 2024.
The firm attributes the growth to a 35pc growth in turnover to Ksh 1.2 billion from Ksh 873 million reported over the same period last year. This was supported by higher sales from avocado and macadamia nuts in the international market.
Reduced supply of avocados by South American suppliers saw Kakuzi sales rise by 42pc to Kshs 951 million, up from Ksh 670 million.
“Despite the challenges posed by reduced avocado production in Peru and Mexico, Kakuzi has shown resilience in the face of a tight supply situation in Europe and the USA. The impact of climate change on agriculture, including our own, has been significant, with the rainfall last April nearly double the normal amount, negatively affecting avocado production. However, we remain steadfast in our commitment to overcoming these challenges,” said Chris Flowers, Kakuzi Managing Director.
The firm says its macadamia earnings have now returned to a profit zone, with a Ksh 32 million profit, up from a Ksh 329 million loss posted within the same period last year.
“In line with our expectations, the global macadamia industry has taken a positive turn, with all markets recording a return to near normal (pre-COVID pandemic) demand levels. Global stock levels from 2023 have largely been consumed, and 2024’s production, which is currently being harvested and processed, is well-committed to the market,” he added.
Kakuzi similarly saw profits from sustainable wood products rise by 4%pc to Ksh 71 million, up from Ksh 46 million posted in the same period last year.
Due to the ever-growing demand for quality superfoods globally, the company expanded its avocado orchards by 60 hectares last year, up from 927 hectares at a Kshs 120 million investment cost. Kakuzi made history in 2022 by landing an inaugural shipment of fresh fruits in the Chinese market.
