Kakuzi, a listed agribusiness firm, reported a pre-tax profit of KES 507 million for the six months ending June 2024, driven by a steady rise in earnings from macadamia and avocado exports.
The company noted that global demand for macadamia nuts has returned to pre-pandemic levels. This surge in demand contributed to a 35% increase in total turnover to KES 1.175 billion.
Managing Director Chris Flowers attributed the strong performance to a buoyant international avocado market.
“In line with our expectations, the global macadamia industry has taken a positive turn, with all markets recording a return to near normal (pre-COVID pandemic) demand levels. Global stock levels from 2023 have largely been consumed, and 2024’s production, which is currently being harvested and processed, is well-committed to the market.”
Despite challenges posed by reduced avocado production in Peru and Mexico, Kakuzi demonstrated resilience in the face of tight supply in Europe and the USA.
Avocado earnings soared by 42% to KES 951 million, and the macadamia segment returned to profitability with KES 32 million in earnings.
Demand for Kakuzi’s sustainable wood products also increased, leading to a 54% rise in divisional profits.
Board Chairman Nicholas Ng’ang’a emphasized Kakuzi’s commitment to promoting responsibly grown Kenyan superfoods. He highlighted the challenges posed by the geopolitical situation in the Red Sea, which has forced shipping lines to take a longer route, affecting avocado quality.
Ng’ang’a stressed the importance of diversifying markets to mitigate risks. While China, India, and the Middle East offer long-term growth potential, Europe remains the primary market. Kakuzi is exploring new opportunities in India and Malaysia to expand its reach.
To meet the growing demand for avocados, the company expanded its avocado orchards by 60 hectares last year for KES 120 million.
