Kakuzi has released its half-year results with profits declining by 9 percent on account of lower revenues from the sale of tea.
According to the financial statement released, Kakuzi received 245.58 million shillings in profits from 270.45 million shillings at the same time last year.
Kakuzi also deals with the planting, buying and selling of avocadoes and said during the period under review, it received low valuation due to un-harvested avocado crop.
“While there was an increase in revenue from avocado sales, lower volumes of un-harvested avocado crop resulted in a reduction in their fair value adjustment compared to the prior period,” said the firm.
The avocado market around the globe is blossoming with prices rising with each passing day. Most of the avocados from Kenya are exported in other countries such as Canada.
This year, President Uhuru Kenyatta flew to China to sign an agreement that allowed avocado from Kenya to be exported to China although some farmers protested the hard terms and conditions.
Kakuzi hopes to capitalize on the sale of avocados to make a come-back in terms of profits. Kenya beat South Africa in the production of avocado meaning the country stands to benefit from the competition.
In 2018, South Africa dropped its move that had banned avocados from Kenya for 10 years. Kenyans can now export their avocados to South Africa, creating a new market for the produce.
Kenya and South Africa are the two major producers of avocado in Africa with most of their products meant for export to other countries.
In Kenya, many farmers are turning to grow of avocado given the good returns as compared to other crops. Cases of farmers uprooting their tea bushes to plant avocados are on the increase with some from the Rift Valley region considering abandoning the growing of maize.