Kakuzi Ld Half-year Report (0910J)

TIDMKAKU

RNS Number : 0910J

Kakuzi Ld

15 August 2019

KAKUZI PLC

EXTRACT FROM THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2019

The unaudited results for the Kakuzi Group for the period of six months to 30 June 2019 and the comparative figures for the previous year are as follows:

 
    Condensed Consolidated Statement of Profit or Loss 
              and other Comprehensive Income 
 
                                        30 June    30 June 
                                           2019       2018 
                                        Shs'000    Shs'000 
 
 Sales                                  619,463    613,118 
                                       ========   ======== 
 
 Profit before fair value gain 
  in non-current biological assets 
  and income tax                        334,857    361,927 
 Fair value gain in non-current 
  biological assets                      20,225     20,641 
 
 Profit before income tax               355,082    382,568 
 Income tax expense                    (109,501)  (112,114) 
                                       --------   -------- 
 
 Profit for the year                    245,581    270,454 
 
 Other Comprehensive Income: 
 Items that are not reclassified 
  to profit or loss: 
 Remeasurement of post-employment             -          - 
  benefit obligations (net of tax) 
 Total comprehensive income             245,581    270,454 
                                       ========   ======== 
 
                                            Shs        Shs 
 Earnings per share (Shs): 
 Basic and diluted earnings per 
  ordinary share                          12.53      13.80 
 
 
 
         Condensed Consolidated Statement of Cash flows 
 
                                             30 June     30 June 
                                                2019        2018 
                                             Shs'000     Shs'000 
 
 Cash and cash equivalents at 
  the beginning of the year                1,500,935   1,648,749 
                                           ---------   --------- 
 
 Net cash used in operating activities       (86,944)   (139,160) 
 Net cash used in investing activities      (235,314)    (69,430) 
 Net cash used in financing activities      (176,400)   (137,200) 
 Effect of exchange rate differences 
  on cash and cash equivalents                 1,911      (5,566) 
                                           ---------   --------- 
 Decrease in cash and cash equivalents      (496,747)   (351,356) 
 
 Cash and cash equivalents at 
  the end of the year                      1,004,188   1,297,393 
                                           =========   ========= 
 
 
 
        Condensed Consolidated Statement of Financial Position 
                                                             Audited 
                                30 June        30 June   31 December 
                                   2019           2018          2018 
                                Shs'000        Shs'000       Shs'000 
 EQUITY 
 Share capital                   98,000         98,000        98,000 
 Other reserves                  19,653         16,607        19,653 
 Retained earnings            4,621,004      4,340,683     4,375,423 
 Proposed dividends                   -              -       176,400 
                             ----------      ---------   ----------- 
 Total equity                 4,738,657      4,455,290     4,669,476 
 Non-current 
  liabilities                   972,541        871,632       881,602 
                             ----------      ---------   ----------- 
                              5,711,198      5,326,922     5,551,078 
                             ==========      =========   =========== 
 REPRESENTED 
  BY 
 Non-current 
  assets                      3,745,481      3,402,413     3,624,125 
 
 Current assets               1,371,745      1,292,927       815,982 
 Cash and cash 
  balances                    1,004,188      1,297,393     1,500,935 
 Current liabilities           (410,216)      (665,811)     (389,964 
                             ----------      ---------   ----------- 
 Net current 
  assets                      1,965,717      1,924,509     1,926,953 
                             ----------      ---------   ----------- 
                              5,711,198      5,326,922     5,551,078 
                             ==========      =========   =========== 
 
 
 
         Condensed Consolidated Statement 
               of Changes in Equity 
                       Share      Other   Retained    Proposed       Total 
                     capital   reserves   earnings   dividends      Equity 
                     Shs'000    Shs'000    Shs'000     Shs'000     Shs'000 
 
 At start of 
  the year            98,000     19,653  4,375,423     176,400   4,669,476 
 
 Profit for the 
  period                   -          -    245,581           -     245,581 
 Dividends paid            -          -          -    (176,400)   (176,400) 
 
 
 At end of period     98,000     19,653  4,621,004           -   4,738,657 
 
 
 

OVERVIEW:

The profit before tax for the period to June 2019 was Shs 355.0 million compared to a profit of Shs 382.6 million for the same period last year. While there was an increase in revenue from avocado sales, lower volumes of unharvested avocado crop resulted in a reduction in the fair value adjustment compared to the prior period. Revenue from tea declined due to lower production and a weak market. Macadamia results improved as a result of increased production and firmer prices. The results were also impacted by the write back of provisions made in prior years, amounting to Shs 103.2 million.

The sale and export of avocados, the main income stream for the Company, has begun in earnest and whilst the market prices look to be improved over last year, the impact of reduced volumes in comparison to 2018 will be unknown until later in the year.

The Directors do not recommend the payment of an interim dividend.

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN

14 AUGUST 2019

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August 15, 2019 02:00 ET (06:00 GMT)