Sasisni PLC has registered a Ksh37.6 million loss for the six months ended March 31st 2024 as demands for its product shrank during the review period.
This is from a Ksh122.1 million profit the firm recorded in a similar period the previous year.
Sasini attributed the loss to geopolitical disruptions and other shocks including the current global economic situation which has had an adverse effect on its business.
“This was aggravated by the high cost of production, depressed commodity prices, lower-than-expected production volumes, and less market demand for some of our products. The recent strengthening of the local currency against the major currencies also impacted the results,” said Sasini in its financial results.
“The unpredictable business operating environment continues to affect the performance of the group,” Sasini added.
Gross profit for the period dropped 14.3 per cent to Ksh626 million from Ksh731 million in a similar period a year earlier.
Total assets for the six months stood at Ksh17.4 billion from Ksh16.2 billion the previous year.
“The remaining six-month period looks promising. A recovery in tea prices, a resumption in avocado shipments, an increase in coffee trading volumes, and a continuously recovering nuts business are imminent and will drive the turnaround,” stated Sasini.
The listed agro-processing firm expects its performance to improve backing on the heavy rains to boost tea volumes and the quality of avocados.
“Going forward, we seek to entrench our Environmental, Social, and Governance (ESG) competence through Sustainable Development
Goals (SDGs) mainstreaming to create a meaningful impact as we seek organic growth through geographic expansion, use of innovation and technology to drive efficiencies and contain costs, focus on quality and establishment of strategic partnerships to expand our reach to engender a triple bottom line focusing on people, planet and profits as we enhance shareholders’ value.”
Sasini has not recommended payment of an interim dividend for the period.
Read: Sasini Issues Profit Warning On High Cost Of Production