KAKUZI LD

Interim / Quarterly Report • Mar 20, 2020

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RNS Number : 8849G

Kakuzi Ld

20 March 2020

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019

Summarised Consolidated Statement of Profit or Loss and other Comprehensive Income
			31 December 2019		31 December 2018
			Shs'000		Shs'000
Sales			2,888,662		3,152,831
			\========		\=========
Profit before fair value gain in non-current biological assets and income tax			931,063		610,001
Fair value gain in non-current biological assets			83,414		74,082
			________		_________
Profit before income tax			1,014,477		684,083
Income tax expense			(301,038	)	(202,489	)
			________		_________
Profit for the year			713,439		481,594
Other Comprehensive Income:
Items that are not reclassified subsequently to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)			11,810		3,046
			________		_________
Total comprehensive income for the year			725,249		484,640
			\========		\=========
			Shs		Shs
Earnings per share (Shs):
Basic and diluted earnings per ordinary share			36.40		24.57
			\========		\=========

Summarised Consolidated Statement of Financial Position
							31 December 2019		31 December 2018
							Shs'000		Shs'000
EQUITY
Share capital							98,000		98,000
Other reserves							31,463		19,653
Retained earnings							4,814,462		4,375,423
Proposed dividends							274,400		176,400
							________		_________
Total equity							5,218,325		4,669,476
Non-current liabilities							1,007,047		881,602
							________		_________
							6,225,372		5,551,078
							\========		\=========
REPRESENTED BY
Non-current assets							3,868,015		3,624,125
Current assets							896,890		815,982
Cash and cash balances							1,696,130		1,500,935
Current liabilities							(235,663	)	(389,964	)
							________		_________
Net current assets							2,357,357		1,926,953
							\========		\=========
							6,225,372		5,551,078
							\========		\=========

Summarised Consolidated Statement of Cash flows
			31 December 2019		31 December 2018
			Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year			1,500,935		1,648,749
			________		_________
Net cash generated from operating activities			785,578		361,190
Net cash used in investing activities			(406,500	)	(369,462	)
Net cash used in financing activities			(176,400	)	(137,200	)
Net exchange losses on foreign currency cash & cash equivalent			(7,483	)	(2,342	)
			________		_________
Increase/(decrease) in cash and cash equivalents			195,195		(147,814	)
			________		_________
Cash and cash equivalents at the end of the year			1,696,130		1,500,935
			\========		\=========

Summarised 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 1.1.2019	98,000		19,653		4,375,423		176,400		4,669,476
Profit for the year	-		-		713,439		-		713,439
Other comprehensive income	-		11,810		-		-		11,810
Dividends - final for 2018	-		-		-		(176,400	)	(176,400	)
- proposed for 2019	-		-		(274,400	)	274,400		-
	_______		______		_________		________		_________
At 31.12.2019	98,000		31,463		4,814,462		274.400		5,218,325
	\======		\======		\========		\=======		\========

OVERVIEW:

An excellent set of results for 2019 showing a pre-tax profit of Shs 1,014 million against Shs 684 million of last year as a result of firm market demand and pricing for both avocado and macadamia throughout the year. The earnings per Share increased from Shs 24.57 to

Shs 36.40. Profitability within the tea operations continued to reflect the difficult trading conditions and significant inflationary pressure on labour and other production costs. 

Kakuzi continues to develop its Core Crop Strategy in line with the Group's long-term objectives.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2019 of Shs 14.00 per ordinary share (2018: Shs 9.00) subject to shareholders' approval. The dividend shall be paid on or about 15 July 2020 to the shareholders on the members' register at the close of business on Friday, 19 June 2020.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday, 9 June 2020 at 12.00 Noon at Nairobi Serena Hotel. The audited Financial Statements are available on the Group's website: www.kakuzi.co.ke/investor-relations/regulatory-news

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN                                                                                                                                                    

19 MARCH 2020

Deloitte●                                                                                                                                            

Deloitte & Touche

Certified Public Accountants (Kenya) Deloitte Place

Waiyaki Way, Muthangari

P.O. Box 40092 - GPO 00100 Nairobi

Kenya

Tel: +254 (0) 20 423 0000

Cell: +254 (0) 719 039 000 Dropping Zone No.92

Email: [email protected] www.deloitte.com

Tel: +254 (0) 20 423 0000

Cell: +254 (0) 719 039 000 Dropping Zone No.92

Email: [email protected] www.deloitte.com

INDEPENDENT AUDITORS' REPORT ON THE SUMMARISED COSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF KAKUZI PLC

Opinion

The accompanying summarised consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the summarised consolidated statement of financial position as at 31 December 2019, the summarised consolidated statement of profit or loss and other comprehensive income, the summarised consolidated statement of changes in equity and the summarised  consolidated statement of cash flows for the year then ended, are derived from the audited consolidated financial statements of the Group for the year ended 31 December 2019.

In our opinion, the accompanying summarised consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of the Group, in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 (''the Regulations'') as applicable to summary  financial statements.

Summarised consolidated financial Statements

The summarised consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards as applicable to the audited consolidated financial statements. Reading the summarised consolidated financial statements and the auditors' report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of the Group and the auditors' report thereon.

The audited consolidated financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 19 March 2020. That report also includes the communication of a key audit matter.

Directors' responsibility for the summarised consolidated financial statements

The Directors are responsible for the preparation of the summarised consolidated financial statements in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 Requirements as applicable to summarised financial statements.

Auditors' responsibility

Our responsibility is to express an opinion on whether the summarised consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary  Financial Statements.

Certified Public Accountants (Kenya)

Nairobi

CPA Anne Muraya, Practising certificate No. 1697.

Signing partner responsible for the independent audit

19 March 2020

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