Agribusiness company Kakuzi has recorded a Sh494.7 million profit before tax in its half-year results announced on Thursday.

The profit was lifted by a spike in sales, especially Kakuzi’s strategic avocado and macadamia crops and a steady growth in revenues from its efforts to diversify its market and products.

Kakuzi MD Chris Flowers says the company’s profit before tax has grown by 60 per cent up from Sh276.7 million posted in the same period last year.

Its after-tax profit also closed at Sh341.3 million, an increase from Sh194.6 million posted within the same period last year, which represented a 75 per cent growth.

Its performance as at June 30, 2022 trading period was inspired by rising sales which topped the Sh1.02 billion mark up from Sh888.95 million booked in the same period last year.

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In the reviewed trading period, Flowers says the early season avocado international market prices had opened at a poor level but continued to recover at the close of the six months.

"The prices for early season avocados were very poor, but they have slowly recovered as the months progressed. Having fruit in the market for as many months of the year as possible has helped shield 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," Flowers said.


He added, "As the Avocado harvest season comes to a close next few months, we are anticipating higher avocado exports, this 'ON' year cropping cycle while our diversification strategy continues to gain steam."

As part of Kakuzi’s revenue, product and market diversification strategy, domestic sales of macadamia and blueberry have been upscaled as it launched avocado exports to China.

Nicholas Ng'ang'a 

Kakuzi Chairman Nicholas Ng'ang'a said 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 rollout of its diversification strategy.

"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," Ng'ang'a said.

He added that Kakuzi was also expanding its sustainable wood products targeting a higher-value market while also increasing the sales volumes as a significant short-term goal.