Kakuzi : Extract from Interim Financial Statements 2019

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

	30 June 2019	30 June 2018
	Shs'000		Shs'000
Sales	619,463		613,118
Profit before fair value gain in non-current biological assets and income tax	334,857	361,927
Fair value gain in non-current biological assets	20,225	20,641
Profit before income tax
355,082	382,568
Income tax expense	(109,501)		(112,114)
Profit for the year	245,581	270,454
Other Comprehensive Income:
Items that are not reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)	-		-
Total comprehensive income	245,581	270,454
Earnings per share (Shs):	Shs		Shs
Basic and diluted earnings per ordinary share	12.53	13.80
Condensed Consolidated Statement of Cash flows
	30 June 2019	30 June 2018
	Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year	1,500,935		1,648,749
Net cash used in operating activities	(86,944)	(139,160)
Net cash used in investing activities	(235,314)	(69,430)
Net cash used in financing activities	(176,400)	(137,200)
Effect of exchange rate differences on cash and cash equivalents	1,911	(5,566)
Decrease in cash and cash equivalents	(496,747)		(351,356)
Cash and cash equivalents at the end of the period	1,004,188	1,297,393

Condensed Consolidated Statement of Financial Position

															Audited
			30 June 2019	30 June 2018		31 December 2018
EQUITY					Shs'000		Shs'000				Shs'000
Share capital			98,000	98,000				98,000
Other reserves			19,653	16,607				19,653
Retained earnings			4,621,004	4,340,683				4,375,423
Proposed dividends				-				-				176,400
Total equity
			4,738,657	4,455,290				4,669,476
Non-current liabilities			972,541	871,632				881,602
REPRESENTED BY				5,711,198			5,326,922					5,551,078
Non-current assets			3,745,481	3,402,413				3,624,125
Current assets			1,371,745	1,292,927				815,982
Cash and cash balances			1,004,188	1,297,393				1,500,935
Current liabilities			(410,216)	(665,811)				(389,964)
Net current assets				1,965,717			1,924,509					1,926,953
				5,711,198			5,326,922					5,551,078
	Condensed Consolidated Statement of Changes in Equity
		Share			Other	Retained	Proposed	Total
		capital			reserves	earnings	dividends	Equity
		Shs'000			Shs'000	Shs'000			Shs'000	Shs'000
At start of the year	98,000	19,653		4,375,423				176,400	4,669,476
Profit for the period	-	-		245,581				-	245,581
Dividends paid	-	-		-		(176,400)	(176,400)
At end of period	98,000	19,653		4,621,004				-	4,738,657

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