Williamson Tea Kenya (Plc) says it posted a Net Profit of KSh 137 Million for the financial year ended 31st March 2020 compared to a loss of KSh 172 Million in the same period last year.
“The very large crop volumes experienced at the end of the financial year and the reduced demand pushed the price of tea down as too much supply overtook demand with he average prices falling by 12 percent,” the firm said in its audited results.
According to the Nairobi Securities Exchange (NSE) listed firm, its operation costs decreased to KSh 33 million from a loss of KSh 239 million the previous year.
Net finance income rose to KSh 60.9 Million from KSh 18 Million at the end of 2019 financial year.
Gross profit increased to KSh 104.1 Million at the end of 31st March 2020 compared to a loss of KSh 212 Million the previous year.
Its audited results indicate that its total comprehensive income increased to KSh 176 million from a loss of KSh 172 million in the previous financial year.
The Directors have recommended a final dividend of KSh 20 per share, subject to shareholders’ approval.
The company will conduct a virtual AGM on Thursday 20th August 2020 at 11.00 a.m.
The dividend will be paid to members on the register at the close of business on 18th August 2020.
Williamson Tea is a fifth-generation tea farming business. Its tea farms include Kaimosi, Kapchorua, Tinderet, and Changoi which are split throughout Nandi and Kericho.
It projects a positive outlook for the year attributed to extremely favorable weather conditions since October 2019 and an increase in tea supply in Kenya.
However, “…When placed against a reduction in global demand results in extremely week markets. Prices are in freefall and we do not anticipate any change to this situation as the year progresses.”
“We shall continue to focus on crop quality and manage our costs as we await an improvement in the market”, said G. K Masaki, the Company Secretary in a statement on behalf of the Board.
READ
