Williamson Tea Kenya (Plc) on Friday warned of lower profits for the fiscal year ending 31st March 2021.
According to the Nairobi Securities Exchange (NSE) listed firm, its results could be at least 25 per cent lower compared to the Net Profit of KSh 137 Million for the previous financial year.
“The anticipated decline in full year’s profit is mainly attributed to a depressed property market leading to a loss on revaluation of the group’s investment properties as well as rising production costs and lower global market prices as impacted by the Covid pandemic,” the Board’s chair Mr E.N.K Wanjama said in a notice to shareholders.
However, the loss on revaluation of investment properties as cited above has got no impact on the group’s cash flow position, the company notes.
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.