Limuru Tea Company’s financial year ended 31st December 2020 results were broadly in line with their expectations posting a pre-tax loss of Ksh 7.9 million compared to a pre-tax profit of Ksh 3 million in 2019.
“The decrease in the profits for the period is mainly due to lower tea market prices that were realised in 2020 in the midst of rising cost of production and the impact of the Covid-19 pandemic,” the company said.
The listed firm which is an outgrower to Unilever Tea Kenya Limited, says its revenues increased by 6 per cent to Ksh 97 million in the fiscal year from Ksh 91 million in 2019. This was driven by higher sales volume from increased production.
During the year, it produced 3, 882, 430 kilograms of Greenleaf compared to 3,201,030 the previous year which in turn was manufactured into 844, 103 kilograms of black tea compared to 719, 409 previous year.
“Green leaf and black tea increased by 21 per cent and 17 per cent respectively in 2020. The increase is attributed to better weather conditions and yield improvement arising from the strategic investments done in the recent years to improve the low yielding fields through replanting of new clones to replace the old seedling fields,” the firms said.
The Directors did not recommend the payment of dividend for the year.
Going forward, the company says it has taken necessary measures to safeguard its staff and the interests of the business in 2021 and beyond.
However, “Cost management remains a key focus area in the wake of low market of prices.”