Limuru Tea Plc Issues FY2020 Profit Warning on High Production Costs

The Kenya Tea Development Agency (Holdings) Limited Board has today approved an increase in monthly green leaf payments for farmers in KTDA regions five, six, and seven by 11 percent and 17 percent respectively in a move aimed at enhancing farmers’ monthly earnings.

Tea Estate in Limuru I

Limuru Tea Company says it expects to record a decline in net profits for the financial year ended 31st December 2020 due to rising cost of production and a global downturn.

“The board is of the view that the estimated decrease for the period is due to lower tea prices that were realized in 2020 on account of the rising cost of production and a global downturn triggered by the COVID-19 pandemic,” said Alison I.N Kariuki, the listed firm’s Company Secretary.

The listed firm is an outgrower to Unilever Tea Kenya Limited. 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.

At the end of the period ended 31st December 2019, Limuru Tea Plc posted a pre-tax profit of KSh 3 Million compared to KSh 3.7 Million the year prior.