Sasini earnings decline 13 per cent on harsh weather

Listed agriculture firm Sasini has recorded a 13 per cent decline in profit after tax to stand at Sh293.5 million from Sh339.4 million last year.

According to the company’s audited results for the year ended September 30, the decline in earnings was attributed to a bad year characterised by harsh weather conditions, hot political temperature and workers strike.

“The year began on a low note of political uncertainty after the long electioneering period,” said in a statement accompanying the results, adding that this was escalated by a strike that affected production and quality of tea.

Production during the year declined by four per cent to 10,804 tonnes of processed tea against 11, 208 tonnes achieved in 2017.

At the same time, Sasini’s coffee division went through a challenging period following prolonged cold weather which affected the size and quality of the beans.

That notwithstanding, its coffee estates produced 891 tonnes of coffee against 851 tonnes the previous year. As a result, the firm recorded a decline in turnover of 16 per cent to Sh3.5 billion compared to Sh4.2 billion in 2017.

However, the firm says its diversification programmes aimed at improving performance were not affected, with a macadamia processing factory expected to start operation in March next year.