Listed superfoods producer Kakuzi has posted announced a net profit of Sh845.8 million for the fiscal year ended December 31, 2022, representing a 62 per cent spike in after-tax profit.
Kakuzi realized a historical record growth against its pretax profit, which closed at Sh1.221 billion, accounting for a 159 per cent increase from Sh472 million posted the previous year.
The company, which is listed at the Nairobi Securities Exchange (NSE), in the leading grower and exporter of high-grade avocado and macadamia in Kenya.
Kakuzi Managing Director Chris Flowers credited the growth in earnings to an upsurge in production of quality export-grade avocado and other products witnessed reasonable sales.
He said the earnings, reinforced by total sales revenue amounting to Sh4.434 billion, spiked from Sh3.296 billion posted the previous year and boosted by more sales for forestry, livestock, and blueberry produce in the local market.
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The company’s board has proposed that Kakuzi shareholders receive an 8 per cent per share dividend paid at Sh24 rate, which is an increase from the Sh22 payout for the previous year.
The improved dividends are set to be paid on June 30, 2023 to the Kakuzi shareholders on the members register as at the close of business on Wednesday May 31, 2023.
“The Kakuzi Plc market and product diversification strategies complimented by the enhanced environment, social and corporate governance commitments are paying off, as the trading results indicate,” said Flowers.
He added, “The diversification efforts help to mitigate market and production risks associated with agri-business; however, international market trends will always impact our results.”
Flowers confirmed that Kakuzi is preparing to quadruple its export volumes to the Chinese market for its Hass Avocado variety fruit as part of its market diversification efforts.
In 2022, the superfoods producer became the first commercial exporter of African avocados to China with a shipment of 180 tons of fruit loaded in nine containers of quality avocados.
He added that the listed firm had invested heavily to ensure it is compliant with the stringent demands of the Chinese market, including tree-to-plate traceability protocols.
Kakuzi has also extended its Avocado orchards by 60 hectares, up from 927 hectares at a cost of Sh120 million to meet the ever-growing demand for quality superfoods globally.
In 2022, the firm bagged a global certification confirming that its avocado and blueberry farming operations adhered to sustainable water resource management approaches.
