Sasini PLC has issued a profit warning for the financial year ending 30th September 2023.
The agricultural firm has warned that the profits for the period will shrink by at least 25 per cent compared to those reported in the prior year.
According to the listed firm, the dip in profits for the year was occasioned by the very high cost of production due to the unplanned escalation of input costs.
The firm has also attributed the performance to the prolonged severe drought that hit the country during the first six months of the financial year which negatively affected coffee production volumes.
Read: Car & General Issues Profit Warning On Dollar Strengthening, Surge In Finance Costs
The geopolitical events and the severe recession in the world market also affected Sasini macadamia business.
For the half-year period ended June 2022, the NSE-listed agricultural firm posted a 75 jump in its net profit to Ksh341.2 million, backed by higher sales and lower costs of production.
Sasini joins other firms like the Nation Media Group (NMG) and Car & General that have issued profit warnings.
Read: NMG Issues Profit Warning On Increase Price Of Newsprint, Weaker Local Currency
Car & General Kenya PLC has warned the profits for the fiscal year ending December 31, 2023, will drop by more than 25 per cent as a result of the weakening of the Kenya Shilling against the US dollar.
On the other hand, NMG’s profit for the financial year ending December 31 2023 will sink by at least 25 per cent due to the weakening of the local currency, higher taxes in the country and a surge in the price of newsprint.