KAKUZI LD

Earnings Release • Aug 15, 2019

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RNS Number : 0910J

Kakuzi Ld

15 August 2019

KAKUZI PLC

EXTRACT FROM THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2019

The unaudited results for the Kakuzi Group for the period of six months to 30 June 2019 and the comparative figures for the previous year are as follows:

Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income
			30 June 2019		30 June 2018
			Shs'000		Shs'000
Sales			619,463		613,118
Profit before fair value gain in non-current biological assets and income tax			334,857		361,927
Fair value gain in non-current biological assets			20,225		20,641
Profit before income tax			355,082		382,568
Income tax expense			(109,501	)	(112,114	)
Profit for the year			245,581		270,454
Other Comprehensive Income:
Items that are not reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)			-		-
Total comprehensive income			245,581		270,454
			Shs		Shs
Earnings per share (Shs):
Basic and diluted earnings per ordinary share			12.53		13.80

Condensed Consolidated Statement of Cash flows
			30 June 2019		30 June 2018
			Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year			1,500,935		1,648,749
Net cash used in operating activities			(86,944	)	(139,160	)
Net cash used in investing activities			(235,314	)	(69,430	)
Net cash used in financing activities			(176,400	)	(137,200	)
Effect of exchange rate differences on cash and cash equivalents			1,911		(5,566	)
Decrease in cash and cash equivalents			(496,747	)	(351,356	)
Cash and cash equivalents at the end of the year			1,004,188		1,297,393

Condensed Consolidated Statement of Financial Position
									Audited
					30 June 2019		30 June 2018		31 December 2018
					Shs'000		Shs'000		Shs'000
EQUITY
Share capital					98,000		98,000		98,000
Other reserves					19,653		16,607		19,653
Retained earnings					4,621,004		4,340,683		4,375,423
Proposed dividends					-		-		176,400
Total equity					4,738,657		4,455,290		4,669,476
Non-current liabilities					972,541		871,632		881,602
					5,711,198		5,326,922		5,551,078
REPRESENTED BY
Non-current assets					3,745,481		3,402,413		3,624,125
Current assets					1,371,745		1,292,927		815,982
Cash and cash balances					1,004,188		1,297,393		1,500,935
Current liabilities					(410,216	)	(665,811	)	(389,964
Net current assets					1,965,717		1,924,509		1,926,953
					5,711,198		5,326,922		5,551,078

Condensed Consolidated Statement of Changes in Equity
	Share capital		Other reserves		Retained earnings		Proposed dividends		Total Equity
	Shs'000		Shs'000		Shs'000		Shs'000		Shs'000
At start of the year	98,000		19,653		4,375,423		176,400		4,669,476
Profit for the period	-		-		245,581		-		245,581
Dividends paid	-		-		-		(176,400	)	(176,400	)
At end of period	98,000		19,653		4,621,004		-		4,738,657

OVERVIEW:

The profit before tax for the period to June 2019 was Shs 355.0 million compared to a profit of Shs 382.6 million for the same period last year. While there was an increase in revenue from avocado sales, lower volumes of unharvested avocado crop resulted in a reduction in the fair value adjustment compared to the prior period. Revenue from tea declined due to lower production and a weak market. Macadamia results improved as a result of increased production and firmer prices. The results were also impacted by the write back of provisions made in prior years, amounting to Shs 103.2 million.

The sale and export of avocados, the main income stream for the Company, has begun in earnest and whilst the market prices look to be improved over last year, the impact of reduced volumes in comparison to 2018 will be unknown until later in the year.

The Directors do not recommend the payment of an interim dividend.

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN                                                                                                             

14 AUGUST 2019                                                                                                                                                                                                                                                                                                                                                       

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