Kakuzi PLC, the agriculture-based superfoods producer listed on the Nairobi and London stock exchanges, has announced a half-year net profit of KSh 295.5 million, despite pressures on its avocado and tea divisions. The company’s total revenue rose 28.6 percent to KSh 1.51 billion, driven by strong performances in macadamia and blueberry production.
Speaking when he confirmed the half-year 2025 trading results, Kakuzi Managing Director Mr. Chris Flowers said the firm has adopted strategic operating strategies to facilitate growth within a challenging operating environment.
“The year-to-date trading in our two core crops is in line with expectations. The international avocado market has been well supplied, with price levels reflecting this situation,” Mr. Flowers said. He added, “The earlier experienced shipping route challenges are also beginning to stabilise with an increasing number of voyages returning to the Red Sea routing.”
Revenue grew to KSh 1.51 billion, up from KSh 1.17 billion during the same period in 2024. However, net profit declined by nearly 15 percent, from KSh 347.5 million to KSh 295.5 million. Earnings per share dropped to KSh 15.08, down from KSh 17.73.
Kakuzi’s crop performance for the half year reflected a mixed picture across its divisions. Avocado profits dropped sharply to KSh 395 million from KSh 951 million, as increased international supply weighed heavily on crop valuations.
In contrast, macadamia delivered a strong rebound, with earnings surging to KSh 319 million, up from just KSh 32 million a year earlier, driven by robust global demand. The blueberry segment also showed improvement, recording a KSh 13 million profit compared to a KSh 17 million loss in the previous period.
However, tea operations continued to struggle, with losses widening to KSh 27.5 million from KSh 3.5 million, largely due to depressed market prices. Kakuzi turned around its operating cash flow to a positive KSh 11.9 million, reversing a previous outflow of KSh 536.1 million. Cash and bank balances improved markedly to KSh 890.3 million, up from just KSh 130.4 million.
Managing Director Chris Flowers highlighted that the poorer avocado earnings are tied to swollen global supply, which depressed prices, even as export volumes remained healthy. Notably, Kakuzi exported 165 containers (801,840 cartons) of avocados to Europe, where competition from Peru, South Africa, and Colombia remains intense. Shipping routes are stabilising following previous disruptions.
Meanwhile, the surge in macadamia profitability underscores the benefits of a diversified crop portfolio. Blueberries have also matured into a profitable arm, and the firm continues to expand in this space.
Despite these successes, Mr Flowers raised concerns over recent land invasion incidents near Kakuzi farms. He warned of environmental degradation and heightened tensions with local communities, noting that the company is pursuing legal remedies to protect its shareholder assets.
“The actions have occasioned massive environmental damage and raised security tensions among the local community. We are, however, pursuing legal remedies and redress available to us, to secure shareholder rights and avoid attempts to expropriate or erode the value of our shareholder assets,” Mr. Flowers assured Kakuzi shareholders.
The company’s business growth and diversification plans, he said, are firmly anchored on positively contributing to the development and promotion of Murang’a County and the national economy, including job creation and foreign exchange (Forex) earnings.
Kakuzi’s half-year results reflect the complexity of modern agribusiness: successes in macadamia and blueberries are partially offset by challenges in traditional staples like avocado and tea. The firm’s ability to diversify, improve operational cash flow, and navigate environmental and logistical risks will be vital in sustaining momentum into the second half of 2025.
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