Limuru Tea Company says it posted a pre-tax loss of Ksh 11 million for its unaudited results in the first half of 2020 compared to KSh 26 million last year.
“This reduction in loss is attributed to Topline growth and effective cost management initiatives,” said the Board Chair in the financial statement.
Total revenues increased by 72 percent to Ksh50 million in the period compared to Ksh 29 million realized in the same period of 2019. This increase in the first half of 2020 was driven by higher sales volumes which offset the adverse impact of declining market prices.
During the period, it produced 2,172 Tons of green leaf, which in turn was manufactured into 458 Tons of black tea. This was a 72 percent increase in Made Tea volumes compared to the first half of 2019.
Going forward, the company will continue to focus on volume growth, cost management, and other strategic initiatives to mitigate the market impact.
However, “The depressed market prices continue to pose a risk to the business performance.”
In addition, “The Covid-19 pandemic remains a risk to the operations of the business, however, the management has put in robust business continuity plans to ensure this risk is minimized.”
The Directors did not recommend an interim dividend.