@BusinessDaily

Limuru Tea sinks deeper in the red with Sh22mn loss

8 months ago, 12 Mar 13:30

By: James Ngunjiri

Limuru Tea Plc #ticker:LIMT has sunk deeper in the red on the back of decreased revenue to post an after-tax loss of Sh22.13 million in 2017 from Sh19.07 million the previous year. The company attributed the performance to a decline in sales volumes. The Nairobi Securities Exchange (NSE)-listed firm reported a total revenue drop of 23 per cent to Sh80 million in 2017 from Sh104 million in 2016. This was due to a drop in sales that offset the benefits realised from improved prices in the market and impact of employees industrial action during the year which impacted volumes of the leaf realised. “The company posted a pre-tax loss of Sh31.6 million in the year ended December 31, 2017 compared to Sh26.7 million pre-tax loss in 2016. The increase in pre-tax loss compared to the prior year was largely attributed to decrease in the turnover as mentioned and inflationary pressures on costs,” said the firm’s chairman Richard Korir said in a regulatory filing Monday. The firm’s directors did not recommend the payment of a dividend. Drought Last year, the agricultural company produced 2,039,613 kilos of green leaf, a 35 per cent decrease due to prolonged drought in the East of Rift Valley where the firm is located. This in turn made 469,609 kilos of black tea. Mr Korir said the firm is optimistic of improved crop yield this year due to increased rainfall that started at the end of last month. Also, auction prices are steady while the Kenyan Shilling has shown indications of strengthening against the US dollar. “If the improved weather conditions continue into the second quarter of the year and the market remains steady together with the cost management initiatives the business is undertaking, the full year results are expected to be better than those of the last year,” said Mr Korir.
Read More


Category: business news corporate markets opinion economy lifestyle

Suggested

Now
@CapitalFMNews - By: Correspondent
Tourism sector gears up for high December season

NAIROBI, Kenya Oct 19 – The tourism sector is hoping to cash in big in the upcoming peak season, having suffered numerous challenges in the past. With Kenya breaking news | Kenya news today | ...

Category: business
8 hours ago, 05:49
@BusinessDaily - By: James Kariuki
Imported power equipment faces auction over delays

The public auction slated for November 20 is targeting to dispose of equipment belonging to Kenya Power, GDC and Ketraco ...

Category: business news lifestyle opinion economy corporate
2 hours ago, 12:41
@CapitalFMNews - By: Agence France Pres ...
JPMorgan Chase to build ‘fintech’ campus in Silicon Valley

New York, US, Oct 22 - JPMorgan Chase announced on Friday that it will open a new campus for financial technology, or "fintech," in Silicon Valley in Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 13:35
@BusinessDaily - By: Reuters
CMA warns over online forex trading

Regulator says it plans to take appropriate action against any persons involved in illegal online forex trading ...

Category: business corporate news
1 hours ago, 12:52
@BusinessDaily -
Easing of travel advisories lifts Lamu tourism

Lamu’s tourism sector has suffered adversely due to insecurity. ...

Category: business opinion news
15 minutes
@BusinessDaily - By: Brian Wasuna
Lawyer, Kenya Power agree out-of-court deal over billing

Kenya Power agrees to stick to ERC approved tariffs and to set up billing query centres countrywide. ...

Category: business news economy corporate

@BusinessDaily

Limuru Tea sinks deeper in the red with Sh22mn loss

8 months ago, 12 Mar 13:30

By: James Ngunjiri
Limuru Tea Plc #ticker:LIMT has sunk deeper in the red on the back of decreased revenue to post an after-tax loss of Sh22.13 million in 2017 from Sh19.07 million the previous year. The company attributed the performance to a decline in sales volumes. The Nairobi Securities Exchange (NSE)-listed firm reported a total revenue drop of 23 per cent to Sh80 million in 2017 from Sh104 million in 2016. This was due to a drop in sales that offset the benefits realised from improved prices in the market and impact of employees industrial action during the year which impacted volumes of the leaf realised. “The company posted a pre-tax loss of Sh31.6 million in the year ended December 31, 2017 compared to Sh26.7 million pre-tax loss in 2016. The increase in pre-tax loss compared to the prior year was largely attributed to decrease in the turnover as mentioned and inflationary pressures on costs,” said the firm’s chairman Richard Korir said in a regulatory filing Monday. The firm’s directors did not recommend the payment of a dividend. Drought Last year, the agricultural company produced 2,039,613 kilos of green leaf, a 35 per cent decrease due to prolonged drought in the East of Rift Valley where the firm is located. This in turn made 469,609 kilos of black tea. Mr Korir said the firm is optimistic of improved crop yield this year due to increased rainfall that started at the end of last month. Also, auction prices are steady while the Kenyan Shilling has shown indications of strengthening against the US dollar. “If the improved weather conditions continue into the second quarter of the year and the market remains steady together with the cost management initiatives the business is undertaking, the full year results are expected to be better than those of the last year,” said Mr Korir.
Read More

Category: business news corporate markets opinion economy lifestyle

Suggested

Now
@CapitalFMNews - By: Correspondent
Tourism sector gears up for high December season

NAIROBI, Kenya Oct 19 – The tourism sector is hoping to cash in big in the upcoming peak season, having suffered numerous challenges in the past. With Kenya breaking news | Kenya news today | ...

Category: business
8 hours ago, 05:49
@BusinessDaily - By: James Kariuki
Imported power equipment faces auction over delays

The public auction slated for November 20 is targeting to dispose of equipment belonging to Kenya Power, GDC and Ketraco ...

Category: business news lifestyle opinion economy corporate
2 hours ago, 12:41
@CapitalFMNews - By: Agence France Pres ...
JPMorgan Chase to build ‘fintech’ campus in Silicon Valley

New York, US, Oct 22 - JPMorgan Chase announced on Friday that it will open a new campus for financial technology, or "fintech," in Silicon Valley in Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 13:35
@BusinessDaily - By: Reuters
CMA warns over online forex trading

Regulator says it plans to take appropriate action against any persons involved in illegal online forex trading ...

Category: business corporate news
1 hours ago, 12:52
@BusinessDaily -
Easing of travel advisories lifts Lamu tourism

Lamu’s tourism sector has suffered adversely due to insecurity. ...

Category: business opinion news
15 minutes
@BusinessDaily - By: Brian Wasuna
Lawyer, Kenya Power agree out-of-court deal over billing

Kenya Power agrees to stick to ERC approved tariffs and to set up billing query centres countrywide. ...

Category: business news economy corporate
Our App