Agricultural firm Kakuzi Plc kept its dividend payout steady at Sh24 per share despite a nearly 50% decline in net profit for 2023.
This decision comes as the company grapples with a significant drop in macadamia earnings due to reduced global demand.
The company’s net profit fell to Sh453.5 million, down from Sh845 million in 2022.
During the fiscal year, its macadamia business suffered a net loss of Sh241.8 million due to a 47% decline in macadamia prices. Its total sales grew to Sh5.4 billion, partially helped by a weaker Kenyan shilling.
“To mitigate some of the challenges arising from export macadamia sales, our domestic sales strategy is evolving to include the production of cold-pressed macadamia cooking oil and a range of value-added macadamia products,” said the company.
Macadamia Market
The firm said its macadamia production remained steady at 737 tonnes, but sales volume only reached 563.
The average macadamia price plummeted to $7.21 per kilogram, down from $15.33 in 2022.
“This was approximately half the previous year’s value, where prices averaged $15.33,” said Kakuzi in its financials.
Reduced demand in Europe and the US linked to inflation impacted macadamia prices throughout most of 2023.
“For avocados, as a result of increased field production, enhanced pack house and related handling efficiencies, exports surpassed the three million carton mark for the first time. This equates to 562 containers which sold with an average price for Hass of Euro 7.65 per carton (2022: Euro 7.95).”
