Half-year Report
Updated : 07:02
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 |
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| 30 June 2019 |
| 30 June 2018 |
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| Shs'000 |
| Shs'000 |
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Sales |
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| 619,463 |
| 613,118 |
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Profit before fair value gain in non-current biological assets and income tax |
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| 334,857 |
| 361,927 |
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Fair value gain in non-current biological assets |
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| 20,225 |
| 20,641 |
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Profit before income tax |
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| 355,082 |
| 382,568 |
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Income tax expense |
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| (109,501 | ) | (112,114 | ) |
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Profit for the year |
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| 245,581 |
| 270,454 |
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Other Comprehensive Income: |
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Items that are not reclassified to profit or loss: |
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Remeasurement of post-employment benefit obligations (net of tax) |
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| - |
| - |
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Total comprehensive income |
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| 245,581 |
| 270,454 |
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| Shs |
| Shs |
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Earnings per share (Shs): |
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Basic and diluted earnings per ordinary share |
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| 12.53 |
| 13.80 |
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Condensed Consolidated Statement of Cash flows |
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| 30 June 2019 |
| 30 June 2018 |
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| Shs'000 |
| Shs'000 |
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Cash and cash equivalents at the beginning of the year |
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| 1,500,935 |
| 1,648,749 |
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Net cash used in operating activities |
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| (86,944 | ) | (139,160 | ) |
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Net cash used in investing activities |
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| (235,314 | ) | (69,430 | ) |
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Net cash used in financing activities |
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| (176,400 | ) | (137,200 | ) |
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Effect of exchange rate differences on cash and cash equivalents |
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| 1,911 |
| (5,566 | ) |
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Decrease in cash and cash equivalents |
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| (496,747 | ) | (351,356 | ) |
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Cash and cash equivalents at the end of the year |
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| 1,004,188 |
| 1,297,393 |
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Condensed Consolidated Statement of Financial Position | ||||||||||
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| Audited | |
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| 30 June 2019 |
| 30 June 2018 |
| 31 December 2018 | |
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| Shs'000 |
| Shs'000 |
| Shs'000 | |
EQUITY |
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Share capital |
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| 98,000 |
| 98,000 |
| 98,000 | |
Other reserves |
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| 19,653 |
| 16,607 |
| 19,653 | |
Retained earnings |
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| 4,621,004 |
| 4,340,683 |
| 4,375,423 | |
Proposed dividends |
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| - |
| - |
| 176,400 | |
Total equity |
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| 4,738,657 |
| 4,455,290 |
| 4,669,476 | |
Non-current liabilities |
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| 972,541 |
| 871,632 |
| 881,602 | |
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| 5,711,198 |
| 5,326,922 |
| 5,551,078 | |
REPRESENTED BY |
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Non-current assets |
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| 3,745,481 |
| 3,402,413 |
| 3,624,125 | |
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Current assets |
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| 1,371,745 |
| 1,292,927 |
| 815,982 | |
Cash and cash balances |
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| 1,004,188 |
| 1,297,393 |
| 1,500,935 | |
Current liabilities |
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| (410,216 | ) | (665,811 | ) | (389,964 | |
Net current assets |
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| 1,965,717 |
| 1,924,509 |
| 1,926,953 | |
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| 5,711,198 |
| 5,326,922 |
| 5,551,078 | |
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Condensed Consolidated Statement of Changes in Equity |
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| Share capital |
| Other reserves |
| Retained earnings |
| Proposed dividends |
| Total Equity |
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| Shs'000 |
| Shs'000 |
| Shs'000 |
| Shs'000 |
| Shs'000 |
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At start of the year | 98,000 |
| 19,653 |
| 4,375,423 |
| 176,400 |
| 4,669,476 |
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Profit for the period | - |
| - |
| 245,581 |
| - |
| 245,581 |
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Dividends paid | - |
| - |
| - |
| (176,400 | ) | (176,400 | ) |
At end of period | 98,000 |
| 19,653 |
| 4,621,004 |
| - |
| 4,738,657 |
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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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