Kakuzi Plc, a listed agricultural firm, has posted KSh347.5 million net profit for the 6 months to June 2024 – a 195.8 percent increase compared to the same period in 2023 on the back of recovery in both the macadamia and avocado market.
Following the lower market supply from the traditional high volume in international markets, especially South America, avocado profits shot up 42 per cent to KSh951 million from KSh670 million in the same period in 2023.Similarly, Macadamia earnings recovered from a KSh329 million loss up to the profit zone, posting a KSh32 million profit in the first half of 2024.Revenue grew to KSh 1.18 billion in the first 6 months of 2024 reflecting a market rebound from the Covid 19 pandemic period coupled with macadamia mild
“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,” Kakuzi PLC Managing Director Mr Chris Flowers said during the earnings release.
Further, demand for sustainable wood products soared, with divisional profits growing 54 per cent to KSh71 million, up from KSh46 million posted in the same period a year prior.
“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 impact of climate change on agriculture, including our own, has been significant, with the rainfall last April nearly double the normal amount, negatively affecting avocado production. However, we remain steadfast in our commitment to overcoming these challenges,” he added.
The heavy rains experienced during the review period negatively impacted the avocado growing conditions at the farm operating level which was mitigated by the firm’s avocado biological assets.
The Kakuzi Farm Market was opened last year, attracting a youthful clientele, and in turn improving the firm’s product sales.
KUKZ closed the previous trading session at KSh380, a year-to-date loss of 1.3 per cent.
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