Kakuzi Plc has announced a Ksh171. 1 million half-year pretax profit on the back of an increase in sales of avocado to China and Europe.
The firm enjoyed a more than double profit lift against its avocado export business, which posted Ksh 655 million growth, up from Ksh289 million posted last year.
The rise in earnings came amid a difficult trading period for the listed firm due to the prevailing macadamia glut in the global market.
Kakuzi managing director Chris Flowers said the firm’s bottom line had been impacted by a Ksh329 million sectoral loss from its macadamia business.
While the macadamia business slowed, Kakuzi’s avocado sales accelerated, with exports to Europe and China peaking with further growth expected in this year’s second half as exports to Malaysia and India following the opening up of new markets in India and Malaysia.
To mitigate further losses in the macadamia business, Kakuzi, he said, is currently pursuing a value-addition strategy that will see the firm market the produce locally.
“The global macadamia glut continues to affect all leading international exporters from Kenya, Australia and South Africa. To mitigate the losses, we have adopted a local marketing strategy geared at availing value added Macadamia products, including ready-to-eat nuts, macadamia flour and cold-pressed oil,” Mr Flowers said.
Kakuzi Chairman Nick Ng’ang’a said the firm is committed to a shared prosperity business model that prioritises all stakeholder needs.
Early this month, Kakuzi adopted a new corporate identity that underscores its commitments to agricultural development for the domestic and export markets.
The new Kakuzi brand is aligned with the national agricultural transformation agenda, with sustainability and climate-smart agriculture at its core.
The new Kakuzi identity, the firm’s first defined brand visual system and strategy in 95 years, also signifies a transition to the contemporary world of superfoods growing for both the domestic and export markets based on a strategic decision to prioritise the production of such foods.