KENYA – Kakuzi PLC, a Kenya primarily based agricultural firm, has introduced a half-year pretax revenue of Kshs 507 million (USD 3.93 million), pushed by a restoration in international demand for macadamia nuts and avocados.
The corporate’s monetary efficiency underscores the resilience of its agricultural operations regardless of ongoing challenges within the sector.
Kakuzi’s Managing Director, Chris Flowers, attributed the optimistic outcomes to a buoyant worldwide avocado market, the place demand has outstripped provide.
“The worldwide avocado market has been favorable for us, primarily as a result of decreased manufacturing in key exporting nations like Peru and Mexico,” Flowers defined. The corporate’s avocado exports grew by 42%, producing Kshs 951 million (USD 7.37 million), up from Kshs 670 million (USD 5.19 million) in the identical interval final yr.
The macadamia division, which had beforehand confronted losses, has additionally returned to profitability. Kakuzi recorded a Kshs 32 million (USD 247,895) revenue on this phase, a big turnaround from a Kshs 329 million (USD 2.55 million) loss within the earlier yr.
Flowers famous that international demand for macadamia nuts has recovered to close pre-pandemic ranges, which has positively impacted the corporate’s earnings.
Kakuzi’s sustainable wooden merchandise division additionally posted spectacular outcomes, with divisional earnings rising by 54% to Kshs 71 million.
The rising demand for quality-treated posts and development supplies has boosted this phase of the enterprise. “Our clients acknowledge the worth of sustainably grown wooden merchandise, which has fueled demand on this space,” Flowers stated.
In a strategic transfer to diversify its markets, Kakuzi entered the Indian avocado export market earlier this yr.
The corporate can be exploring alternatives in Malaysia as a part of its broader enterprise growth technique.
This diversification is seen as a buffer towards potential market disruptions, significantly given the geopolitical challenges affecting conventional export routes.
Kakuzi’s Board Chairman, Nicholas Ng’ang’a, highlighted the influence of the political scenario across the Pink Sea on the corporate’s operations.
With main delivery strains rerouting across the Cape as an alternative of via the Suez Canal, transit occasions for Kenyan avocados have elevated, resulting in some high quality points. “These challenges underscore the important have to discover new markets,” Ng’ang’a remarked.
Regardless of these challenges, Kakuzi stays dedicated to selling Kenyan superfoods in each conventional and rising markets.
The corporate can be centered on increasing its home market presence, significantly via its Kakuzi Farm Market initiative. “Our Farm Market has develop into a hub for native entrepreneurs and has considerably boosted our product gross sales,” Flowers famous.
Trying forward, Kakuzi plans to proceed increasing its avocado orchards and arable operations to fulfill the rising demand for its merchandise. The corporate has already added 60 hectares to its avocado orchards at a value of Kshs 120 million (USD 929.606).
With international demand for superfoods on the rise, Kakuzi is well-positioned to capitalize on these alternatives.
This announcement follows the Kenya Income Authority’s report that fruit exports, pushed primarily by avocados, have overtaken espresso because the nation’s prime income generator.
Earnings from fruit exports reached KES 20.41 billion (USD 157 million) within the first half of 2024, underscoring the growing significance of the avocado business to Kenya’s financial system.
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