Tea farming and exporting company Sasini has reported Ksh293.5 million profit, a 14 per cent decline in net profit in the year ended September as compared to Ksh339.4 million profit it earned last year.
The company attributes the drop to lower production and price drop for its tea and coffee exports.
In the period under review, tea production for the company fell by four per cent to 10,804 tonnes from 11,208 tonnes the previous year.
“Although both the tea and coffee markets remained buoyant in the first half of the year, price realisations declined steadily thereafter affecting turnover and profitability,” said the company.
This will see its shareholders receive a final dividend of Ksh0.5 per share, payable on January 31.
Last year, multinational tea companies were hard-hit after thousands of tea-pickers went on a three-week strike that resulted in losses of up to Ksh300 million, demanding higher pay.
Sasini was among the companies affected by the strike engineered by the Kenya Agricultural and Plantation Workers’ Union (KAPWU).
Other firms affected include James Finlay, Unilever Tea Ltd, Williamson tea Kenya, Karirana Ltd and Limuru Tea.
In January 2017, Sasini announced the appointment of a new managing director, Stephen Maina Githiga who took over from Moses Changowny. Changowny retired on December 31, 2016.
Sasini is a member of the Sameer Group of companies.
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