Williamson Tea Kenya (Plc) has issued a profit warning that its earnings of the financial year ending 31st March 2019 are expected to be at least 25% lower than that of the financial year ended 31st March 2018.
It cites uneven and unpredictable weather patterns and the inability to control rising labour costs.
The Nairobi Securities Exchange (NSE) listed firm in November 2018, reported a Ksh85.1 million half-year loss for the period ended September 2018 as increased quantities of tea available for sale depressed the prices.
“The amount of tea on offer remains high and unless this situation alters and less supply materializes, we do not envisage much change to demand. The future, therefore, remains unpredictable with the advantage on the buying side as we approach the last quarter,” the company reported in the statement through the NSE.