Limuru Tea reviews 14% decline in income in H1 2024  | Meals Enterprise Africa

KENYA – Limuru Tea has reported a 14 % decline in complete revenues for the primary half of 2024, recording KES 52.8 million (US$409,380.05), down from KES 61.6 million (US$477,610.06) throughout the identical interval in 2023. 

The corporate additionally posted a pre-tax lack of KES 19.6 million (US$151,966.84), a big enhance in comparison with the pre-tax lack of KES 2.4 million (US$18,608.18) reported within the earlier yr. 

The decline in efficiency was primarily pushed by antagonistic market costs, which led to a discount in turnover.  

Regardless of the difficult market situations, Limuru Tea managed to extend its manufacturing quantity, with the primary half of 2024 seeing the manufacturing of 1,929 tons of Inexperienced Leaf, which was processed into 414 tons of Black Tea.  

This represents a 26 % enhance in Made Tea volumes in comparison with the identical interval in 2023, largely because of favorable climate situations, together with excessive rainfall from January to March 2024, adopted by the El Niño phenomenon in April and Might 2024. 

Nonetheless, the corporate confronted declining costs in each native and worldwide markets, compounded by inflationary pressures on key materials prices.  

These challenges pressured Limuru Tea to implement value effectivity packages to mitigate the impression on its operations. 

The outcomes come lately after the Competitors Authority of Kenya (CAK) authorised the acquisition of 98.56 % of Lipton Teas and Infusions by UAE’s B Commodities, an affiliate of Sri Lanka-based Browns Funding Plc.  

This acquisition additionally features a 51.99 % minority stake in Limuru Tea Plc and full possession of Lipton Teas and Infusions Rwanda Restricted. 

B Commodities has dedicated to retaining all 9,715 workers at Lipton Teas and 405 workers at Limuru Tea.  

In June, CAK granted the corporate an exemption from a requirement to make a suggestion to accumulate the remaining shares of Limuru Tea, as required below the Capital Markets Authority (CMA) takeover laws. 

Lipton Kenya held the useful shareholding in Limuru Tea, therefore requiring B Commodities to use for the regulatory exemption having indicated its intention to not take over the agency.