Kakuzi Plc, a prominent Kenyan agri-business and superfoods producer, has posted an impressive pre-tax profit of Sh507 million for the half-year ending in 2024.

The strong performance is largely attributed to a global market recovery, particularly in the macadamia and avocado sectors, marking a significant rebound from the prior year’s challenges.

The company, which is listed on both the Nairobi and London Stock Exchanges, reported a 35 per cent increase in turnover to Sh1.175 billion, up from Sh873 million in the same period last year.

Kakuzi's avocado business played a pivotal role in this growth, recording a 42 per cent surge in profits to Sh951 million, an increase from the Sh670 million achieved last year.

This success was largely driven by the constrained supply from major avocado producers such as Peru and Mexico, resulting in increased demand for Kakuzi’s high-quality avocados.

Read More

  1. EPRA slashes kerosene prices while those of petrol and diesel hold steady
  2. Samsung and Galaxy Mobile launch new brand store in Nairobi's Shujaa Mall
  3. Wakulima Market traders clash with police over relocation to Kangundo Road order

Kakuzi’s Macadamia division also experienced a significant turnaround.

After suffering a loss of Sh329 million last year, the division has returned to profitability with a Sh32 million profit.

Kakuzi’s Managing Director, Chris Flowers, attributed this recovery to the resurgence of global demand for macadamia nuts, which has returned to pre-COVID-19 levels.

"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,” Flowers said.

However, the avocado sector was not without its challenges. Adverse weather conditions earlier this year, including unusually heavy rainfall in April, significantly impacted avocado production.

Despite these challenges, Flowers emphasised the resilience of the firm, stating, "Despite the challenges posed by reduced avocado production in Peru and Mexico, Kakuzi has shown resilience in the face of a tight supply situation in Europe and the USA."

The sustainable wood products division also saw substantial growth, posting a 54 per cent increase in profits to Sh71 million from Sh46 million last year.

Kakuzi's Board Chairman, Nicholas Ng'ang'a, highlighted the firm’s dedication to sustainability and diversification in response to shipping challenges in the avocado sector due to geopolitical issues in the Red Sea region.

He stressed the importance of exploring new markets such as China, India, and the Middle East, to mitigate future disruptions. “These challenges underscore the critical need to diversify our markets. We acknowledge that while China, India, and the Middle East offer long-term growth possibilities, they currently lack the scale to substitute Europe,” Ng’ang’a noted.

Kakuzi has also made strategic moves to expand its operations. In March 2024, the company entered the Indian avocado export market and is pursuing opportunities in Malaysia.

Last year, Kakuzi expanded its avocado orchards by 60 hectares at a cost of Sh120 million and made its first shipment of fresh fruits to China in 2022.

Flowers also highlighted the success of Kakuzi’s Farm Market and Boran Barn, both of which have positively contributed to the company’s sales.

"Our customers’ feedback is invaluable. We’ve had to expand our facilities because of the increasing demand for our cold-pressed macadamia oil," he stated.

Looking ahead, Kakuzi remains committed to strengthening its product portfolio and expanding its footprint in emerging markets.

The company’s diverse agricultural offerings, including avocados, blueberries, macadamia nuts, tea, and livestock, position it well to weather future challenges while capitalising on the growing demand for superfoods globally.