Agricultural firm Kakuzi Plc’s half-year profit to June 2022 rose 75 per cent to Ksh. 341.3 million from Ksh. 194.6 million in the same period last year.
The high profits are attributable to more significant revenues, with sales topping Ksh.1 billion in the period from Ksh.888.9 million.
Kakuzi Managing Director, Mr. Chris Flowers, said, “The prices for early season avocados were poor, but they have slowly recovered as the months have progressed. Having fruit in the market for as many months of the year as possible has shielded us from the poor early season market.”
“In addition, entry into China is vital for Kenya. Market prices may be similar to European levels, but such a high volume additional market gives us a choice and diversified sales options.”
As part of the firm’s revenue, product, and market diversification strategy, the domestic sales for macadamia and blueberries have been enhanced.
As part of Kakuzi’s blueberry export plans, the firm is undertaking commercial engagements with Driscoll’s, the global market leader in fresh strawberries, blueberries, raspberries and blackberries.
Kakuzi Gives Profit Warning Following Drop in Avocado Production
Kakuzi Chairman, Nicholas Ng’ang’a, noted that the complex international markets, an increasing cost base for many of the firm’s key inputs, and a worldwide consumer spend squeeze may affect the full-year results, necessitating the diversification strategy rollout.
“Diversification of income streams remains a key strategic goal for the Company. We have embarked on this for the international and domestic market with a range of new and value-added products. Currently, we have two main export products, avocados and macadamia, but through strategic investments, we believe that blueberry production will become the third pillar,” Ng’ang’a said.