Kakuzi Profits Take Hit as Avocado Profits Drop by KSh 556m, Tea Makes KSh 27m Loss
- Kakuzi reported a 15% drop in half-year profits to KSh 295.54 million, down from KSh 347.5 million in 2024
- Avocado earnings fell sharply to KSh 395 million from KSh 951 million due to weaker crop valuations and oversupplied international markets
- The tea division deepened its losses, but two crops made the company millions of shillings in profits
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Nairobi Securities Exchange (NSE)-listed agribusiness firm Kakuzi has reported a sharp drop in earnings for the half year ended June 2025.
Source: Facebook
The firm's profit fell 15% as weak avocado valuations and depressed global tea prices weighed on performance.
The company’s financial results showed that the net profit declined to KSh 295.54 million from KSh 347.5 million posted in the same period last year, while gross earnings slid to KSh 409.6 million from KSh 486 million.
Why did Kakuzi's profits drop?
Avocado earnings plunged to KSh 395 million from KSh 951 million in 2024, which was attributed to weaker crop valuations amid oversupplied international markets.
Kakuzi exported 165 containers (801,840 cartons) of avocados mainly to Europe, where it faced stiff competition from producers in Peru, South Africa, and Colombia.
The tea division deepened its losses, reporting a loss of KSh 27.5 million compared to KSh 3.5 million last year.
Kakuzi said the earnings from tea were hit hard by falling global prices and currency pressures.
Which export crops earned Kakuzi profits?
In contrast to avocado and tea, Kakuzi’s macadamia business was a bright spot, posting a profit of KSh 319 million compared to just KSh 32 million last year.
This growth was supported by buoyant global demand and firmer pricing for the nuts.
Additionally, blueberries also turned profitable, delivering KSh 13 million against a KSh 17 million loss in 2024.
Kakuzi revenue growth
Despite the drop in earnings from avocado and tea, the company's total revenues grew to KSh 1.51 billion from KSh 1.17 billion over the same period in 2024.
This reflects the company's continued diversification to offset headwinds in the avocado and tea segments.
Speaking when he confirmed the half-year 2025 trading results, Kakuzi Managing Director Chris Flowers said the firm has adopted strategies to facilitate growth despite the 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. The earlier experienced shipping route challenges are also beginning to stabilise with an increasing number of voyages returning to the Red Sea routing,” Flowers said.
Source: Facebook
Despite the setbacks, Kakuzi’s directors said business growth plans remain on track, as the firm continues its expansion into high-value crops and resilience building in global commodity markets.
Notably, the board has opted against paying an interim dividend to the shareholders.
How did Kenyan banks perform in H1 2025?
In other news, Kenyan banks posted strong financial results in the first half of 2025, collectively recording net profits of over KSh 100 billion.
Equity Group led the profit ladder at KSh 34.6 billion, followed closely by KCB Group at KSh 32.3 billion, cementing their positions as the most profitable lenders.
Co-operative Bank recorded KSh 14.1 billion, Absa Bank Kenya KSh 11.7 billion, I&M Group KSh 8.31 billion, Stanbic Bank KSh 6.5 billion, and Family Bank KSh 2.2 billion during the same period.
Consolidated Bank returned to profitability with KSh 12 million, compared to the KSh 84 million loss recorded in 2024.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
