The Lower Eastern Times Opening The Third Eye
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Kakuzi Plc, a listed superfoods producer, faced a challenging trading environment in 2024, resulting in a pre-tax loss of Sh167 million due to adverse weather, currency fluctuations, and geopolitical tensions in the Middle East, the company has announced.
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In its 2024 financial results, Kakuzi’s board recommended a final dividend of Sh8 per share, while noting the effects of Red Sea shipping disruptions on avocado exports to Europe.
The company also reported a forex loss of Sh197 million, attributed to the strengthening of the Kenyan Shilling, compared to a Sh118 million forex gain in 2023.
Kakuzi’s Managing Director, Chris Flowers, mentioned that rerouting shipments through the Cape of Good Hope adds two weeks to transit times, affecting the quality of fruit on arrival in Europe.
Avocado profits dropped to Sh361 million from Sh1.37 billion in the previous year, and total exports decreased to 2.2 million cartons from 3.07 million due to unfavorable weather conditions.
However, Kakuzi’s macadamia division showed a recovery, posting a pre-tax profit of Sh69 million, up from a loss of Sh354 million in 2023. The forestry division’s profits rose to Sh288 million from Sh149 million, while the livestock division made a profit of Sh31 million, reversing a Sh13 million loss from 2023.
Kakuzi Chairman Nicholas Ng’ang’a urged stakeholders to explore markets outside Europe, mentioning that while China and India show potential, demand is still low. He pointed out North America as a promising market, with 1.3 million metric tonnes of avocados consumed in 2024, compared to 0.9 million metric tonnes in Europe.
“The U.S. market offers a major opportunity, as over 80% of its avocados are imported from Mexico,” Ng’ang’a said.
Ng’ang’a also emphasized Kakuzi’s commitment to AgTech solutions, including AI-driven farming and autonomous vehicles, to enhance productivity and efficiency.
Meanwhile, Flowers stated that Kakuzi is adjusting to longer shipping times while maintaining a focus on product quality and keeping an eye on geopolitical shifts in the Middle East.
