KAKUZI LD

Earnings Release • Mar 23, 2022

National Storage Mechanism | Additional information

RNS Number : 6353F

Kakuzi Ld

23 March 2022

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
			31 December 2021		31 December 2020
			Shs'000		Shs'000
Sales			3,296,414		3,608,941
Profit before fair value gain in non-current biological assets and income tax			333,435		789,719
Fair value gain in non-current biological assets			138,121		57,813
Profit before income tax			471,556		847,532
Income tax expense			(151,820	)	(225,498	)
Profit for the year			319,736		622,034
Other Comprehensive Income:
Items that are not reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)			6,038		490
Total comprehensive income			325,774		622,524
			Shs		Shs
Earnings per share (Shs):
Basic and diluted earnings per ordinary share			16.31		31.74

Condensed Consolidated Statement of Cash flows
			31 December 2021		31 December 2020
			Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year			1,670,124		1,696,130
Net cash generated from operating activities			556,796		541,255
Net cash used in investing activities			(233,896	)	(358,206	)
Net cash used in financing activities			(352,803	)	(274,413	)
Net exchange gains on foreign currency cash & cash equivalent			15,998		65,358
Decrease in cash and cash equivalents			(13,905	)	(26,006	)
Cash and cash equivalents at the end of the year			1,656,219		1,670,124

Condensed Consolidated Statement of Financial Position
							31 December 2021		31 December 2020
							Shs'000		Shs'000
EQUITY
Share capital							98,000		98,000
Other reserves							37,991		31,953
Retained earnings							4,972,232		5,083,696
Proposed dividends							431,200		352,800
Total equity							5,539,423		5,566,449
Non-current liabilities							1,070,957		1,080,470
							6,610,380		6,646,919
REPRESENTED BY
Non-current assets							3,929,196		3,990,042
Current assets excluding cash and cash balances							1,302,056		1,246,650
Cash and bank balances							1,656,219		1,670,124
Current liabilities							(277,091	)	(259,897	)
Net current assets							2,681,184		2,656,877
							6,610,380		6,646,919

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
On 1.1.2021	98,000		31,953		5,083,696		352,800		5,566,449
Profit for the year	-		-		319,736		-		319,736
Other comprehensive income	-		6,038		-		-		6,038
Dividends - final paid for 2020	-		-		-		(352,800	)	(352,800	)
- proposed for 2021	-		-		(431,200	)	431,200		-
On 31.12.2021	98,000		37,991		4,972,232		431,200		5,539,423

OVERVIEW:

The year saw the group post reduced earnings due to lower avocado production and prices. This was due to the avocado orchards entering their bi-annual offseason bearing cycle which results in a large crop of avocados in one year, followed by a small crop the following year. We, however, experienced greater earnings from macadamia sales during the year as a result of increased yields from our young orchards. Product diversification and value addition remain key investment areas to enhanced stakeholder value and our continued commitment to these is critical for the long term.

DIVIDEND:

Your Board recommends an increase in the dividend per share to Shs 22.00 compared to Shs 18.00 per share in 2020. The dividend shall be paid on or about 30 June 2022 to the shareholders on the members' register at the close of business on Tuesday, 31 May 2022.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held virtually on Tuesday, 17 May 2022 at 12.00 Noon.

BY ORDER OF THE BOARD

NICHOLAS NG'ANG'A

CHAIRMAN             

22 MARCH 2022

Deloitte●                     Deloitte & Touche LLP

Deloitte Place

Waiyaki Way, Muthangari

P.O. Box 40092 - GPO 00100

Nairobi

Kenya

Tel:                 (+254 20) 423 0000

Cell:               (+254 20) 0719 039 000

Dropping Zone No. 92

Email: [email protected]

www.deloitte.com

INDEPENDENT AUDITORS' REPORT ON THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF KAKUZI PLC

Opinion

The accompanying condensed consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the condensed consolidated statement of financial position as at 31 December 2021, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended, are derived from the audited financial statements of the Group for the year ended 31 December 2021.

In our opinion, the accompanying condensed consolidated financial statements are consistent, in all material respects, with the audited 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.

Condensed consolidated financial Statements

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

The audited financial statements and our report thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated 22 March 2022. That report also includes the communication of a key audit matter related to measurement of biological assets. Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current period.

Auditors' responsibility

Our responsibility is to express an opinion on whether the condensed consolidated financial statements are consistent, in all material respects, with the audited 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.

The engagement partner responsible for the audit resulting in this independent auditor's report is

FCPA Anne Muraya, Practicing Certificate No. 1697

For and on behalf of Deloitte & Touche LLP

Certified Public Accountants

Deloitte Place,

Waiyaki Way, Muthangari

P.O Box 40092 - 00100, Nairobi, Kenya

22 March 2022

Partners: D.M. Mbogho; A.N. Muraya; F. O. Aloo; J. Nyang'aya; B.W. Irungu; I. Karim; F. Okwiri; F.O Omondi; F. Mitambo; P. Seroney; D. Waweru; C Luo.

Deloitte & Touche, a partnership with registration No. 177912, converted to Deloitte & Touche LLP Registration No. LLP-A21DDP effective 14 June 2021

Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited

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