Kakuzi Plc pre-tax profit drops 97% amid market disruptions

Kakuzi Plc reported a 97.65% drop in half-year pre-tax profit, falling to KSh 10.4 million from KSh 435.2 million in the previous year. The agricultural firm, which is listed on both the Nairobi and London Stock Exchanges, declared no interim dividends to shareholders.

The decline was driven by poor performance in the macadamia sector, which swung from an operating profit of KSh 318.8 million to an operating loss of KSh 68.2 million due to rising global supply and weaker demand. Additionally, the avocado segment faced pressure from excess global supply and lower anticipated crop volumes.

Geopolitical instability affecting shipping routes into Europe and freight complexities caused by conflict in the Middle East also impacted returns. Conversely, the blueberry and forestry segments showed growth, with forestry operating profit rising to KSh 73.3 million.