Nairobi — Adverse weather, foreign currency fluctuations, and geopolitical tensions in the Middle East created a tough trading environment for listed superfoods producer Kakuzi Plc in 2024, leading to a pre-tax loss of Sh167 million, the company has announced.
In its 2024 financial results released today, Kakuzi's board recommended a first and final dividend of Sh8 per share while highlighting the impact of Red Sea shipping disruptions on avocado exports to Europe.
The firm also reported a foreign exchange loss of Sh197 million due to the strengthening Kenya Shilling, compared to a Sh118 million forex gain in 2023.
Kakuzi Plc Managing Director Chris Flowers noted that rerouting shipments via the Cape of Good Hope adds two weeks to transit times, affecting fruit quality upon arrival in Europe.
Avocado profits plunged to Sh361 million, down from Sh1.37 billion the previous year, while total exports dropped to 2.2 million cartons from 3.07 million cartons due to adverse weather.
Despite this, the company's macadamia division rebounded to a Sh69 million pre-tax profit, recovering from a Sh354 million loss in 2023.
The forestry unit's profits rose to Sh288 million from Sh149 million, while the livestock division recorded a Sh31 million profit, reversing a Sh13 million loss in 2023.
Kakuzi Chairman Nicholas Ng'ang'a urged stakeholders to diversify beyond European markets, noting that while China and India offer potential, demand remains low.
He highlighted North America, which consumed 1.3 million metric tonnes of avocados in 2024, compared to 0.9 million metric tonnes in Europe.
"The U.S. market presents a significant opportunity, with over 80% of its avocados sourced from Mexico," he said.
Ng'ang'a also emphasized Kakuzi's commitment to AgTech solutions, including AI-driven agriculture and autonomous vehicles, to maximize yields and improve efficiency.
Meanwhile, Flowers said Kakuzi is adapting to longer shipping times and will continue focusing on quality products while monitoring geopolitical developments in the Middle East.
