Kakuzi PLC has reported a pre-tax loss of Sh167 million for the year ended December 31, 2024, reversing a profit of Sh664 million in 2023.

Revenue fell to Sh4.79 billion from Sh5.4 billion, driven by lower avocado yields, foreign exchange losses, and disrupted exports due to geopolitical tensions.

Excessive rainfall reduced avocado yields by 23 per cent for Hass and 19 per cent for Pinkerton varieties, cutting total exports to 2.22 million cartons from 3.07 million cartons.

Avocado profits dropped to Sh361 million from Sh1.37 billion.

The Kenyan shilling’s appreciation resulted in foreign exchange losses of Sh197 million, compared to a Sh118 million gain in 2023.

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The Euro averaged Sh140 during the avocado export season, down from Sh162, lowering local currency revenues.

Shipping disruptions forced Kakuzi to reroute cargo via the Cape of Good Hope, adding two weeks to transit times and affecting fruit quality.

Managing Director Chris Flowers noted that excessive rainfall worsened the situation by causing waterlogging and further reducing production.

"The results reflect a number of challenges, including the excessive rainfall experienced in early 2024, which caused waterlogging, hampering fruit production. Consequently, fruit volumes for both Hass and Pinkerton avocados decreased by 23 per cent and 19 per cent, respectively," Flowers stated.

Despite the losses, Kakuzi’s macadamia division posted a Sh69 million pre-tax profit, recovering from a Sh354 million loss. 

The forestry unit’s profit grew to Sh288 million from Sh149 million, while livestock operations turned around with a Sh31 million profit from a Sh13 million loss.

Total assets stood at Sh6.6 billion, down from Sh7.23 billion in 2023. Cash and bank balances declined to Sh1.1 billion from Sh1.4 billion.

Retained earnings fell to Sh5.04 billion from Sh5.33 billion, while proposed dividends dropped to Sh156.8 million from Sh470.4 million.

The board has recommended a final dividend of Sh8 per share, down from Sh24 in 2023, payable on 15 June 2025 to shareholders registered by May 31, 2025.

Chairman Nicholas Ng’ang’a stressed the need for market diversification beyond Europe, citing North America’s growing demand for avocados.

He also highlighted Kakuzi’s focus on technology-driven efficiencies, including artificial intelligence and autonomous agricultural vehicles.

Kakuzi’s Annual General Meeting will be held on 14 May 2025 at Fairmont The Norfolk Hotel in Nairobi.