Limuru Tea PLC has issued a profit warning for the financial year ended 31st December 2023.
The Nairobi Securities Exchange (NSE)-listed firm expects its profit for the trading period to 31st December 2023 to shrink by at least 25 per cent compared to what it posted in a similar period a year prior.
Limuru Tea has attributed the dip in profits due to increased operational costs as a result of increased cost of labour driven by higher industry rate wages.
In addition, Limuru Tea has noted that the cost of importing fertilizer also surged as a result of the depreciation of the Kenya Shilling against the US dollar.
“The Board of Directors of Limuru Tea PLC. (“the Company”) hereby informs holders of securities issued by the Company and the general public that based on a preliminary review of the financial statements of the Company, the Company is expected to record a decline of more than 25% in profit before tax attributable to the shareholders of the Company for the financial year ending 31st December 2023, as compared to the same period ending 31st December 2022,” stated Limuru Tea PLC Chair Dorcas Muli.
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The listed firm has also attributed a projected loss in Biological Asset valuation for the year 2023 to the expected drop in its profit.
Limuru Tea becomes the tenth NSE-listed firm to issue a profit warning for the year ended 31st December 2023.
It joins other listed firms like Sanlam Kenya PLC, Nation Media Group (NMG), Car & General, Kakuzi PLC, Sasini PLC, Crown Paints Kenya, WPP Scangroup, Sameer Africa and Express Kenya that have already issued profit warnings for the fiscal year ended 31st December 2023.
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