- Kakuzi avocado and tea export earnings for the half to June 30th, 2025, negatively affected by lower prices in the firm’s traditional market Europe.
- Company’s avocado division experienced a decline in half-year profit to KES395 million compared to a half-year profit of KES951 million posted in 2024.
- Kakuzi’s tea business recorded a bigger half-year loss of KES27.5 million compared to a loss of KES3.5 million suffered in June 2024.
A decrease in international prices of avocado and tea across Europe has seen Kenya’s agribusiness company Kakuzi PLC’s net profit for the six months to June 30th, 2025 dip by 14.9 percent to $2.28 million (KES295 million).
In a market update on Wednesday, the Nairobi Securities Exchange-listed company said its traditional European market is currently facing steady supply of avocados from other sources including South Africa, Columbia and Peru.
“The international avocado market has been well supplied, with price levels reflecting this situation,” Kakuzi Plc Managing Director Chris Flowers said. He added, “The earlier experienced shipping route challenges are also beginning to stabilize with an increasing number of voyages returning to the Red Sea routing.”
Previously, the fruit exporter expressed concern over increased costs and distance via Cape of Good Hope for its European-bound cargo, a long stretch that saw the fruits reach market late or damaged.
Kakuzi Plc diversification pays off
During the half, however, Kakuzi noted that total revenue increased to $11.68 million (KES1.51 billion), up from $9.05 million (KES1.17 billion) realized within the same period last year on account of uptick as diversification strategy continued to bear fruit.
Flowers noted that while the firm’s flagship export crop, the avocado division, experienced a dip in half-year profit to $3.06 million (KES395 million) compared to a half-year profit of $7.36 million (KES951 million) posted in 2024, primarily because of a lower crop valuation in 2025.
According to Kakuzi PLC, the international avocado markets were undersupplied during the same period last year, which led to a corresponding higher price.
At the close of the half-year reporting period, Kakuzi had exported 165 containers (801,840 cartons) of avocados primarily to its traditional European markets.
The company’s tea business was equally affected by lower prices in the global markets: “Our tea business recorded a half year loss of $212,836.44 (KES27.5 million) compared to a loss of $27088.27 (KES3.5 million) last year, due to lower prices achieved.”
Global macadamia market growing
As the global macadamia market continues to show further gains, the Kakuzi Macadamia division recorded a half-year profit of $2.47 million (KES319 million), up from $247,664.22 (KES32 million) posted within the same period last year.
“The macadamia market is buoyant and exhibiting strong demand. Pricing has reflected this sentiment with further gains over the period, compared to last year.”
Additionally, the fruit exporter’s blueberry production, he said, has also increased in line with expectations. “This (blueberry) business venture is now profitable, recording a half-year profit of $100,613.59 (KES13 million) compared to a $131571.62 (KES17 million) loss for the same period last year,” Mr. Flowers said.
He reiterated that the firm’s Board remains committed to continuing to diversify the Company’s operation and maintain its focus on responsible business models. “Our operating mandate is firmly rooted in our purpose of ‘Growing Together’, lifting others as we grow through a process of meaningful stakeholder engagement”, he said.
The company is however grappling with spirited attempts to disrupt business, including land grabs orchestrated by unscrupulous individuals.
“The actions have occasioned massive environmental damage and raised security tensions among the local community. We are, however, pursuing legal remedies and redress available to us, to secure shareholder rights and avoid attempts to expropriate or erode the value of our shareholder assets,” Mr. Flowers noted.
Read also: Kakuzi PLC slips into the red after Red Sea crisis, forex losses
