Kakuzi Plc released their annual report for the year ended 2023, stating:
The Company closed the 2023 financial year on a stable footing despite a difficult market climate, compounded by increased costs of production. A lack of demand in the global macadamia markets heavily impacted pricing. Consequently, your Company recorded a pre-tax profit of Ksh 664 Million (2022: Ksh 1,221.6 Million). The pre-tax profit drop is mainly attributed to a Ksh 354 Million pre-tax loss from our macadamia operations (2022: Ksh 635 Million Profit). However, the avocado operations performed well, recording a pre-tax profit of Ksh1.4 Billion (2022: Ksh 0.8 Billion).
To mitigate some of the challenges arising from export macadamia sales, our domestic sales strategy is evolving to include the production of cold-pressed macadamia cooking oil and a range of value-added macadamia products.
Macadamia production was in the year was 737 tons with sales volumes increasing from 2022 levels to 563 tons at an average price of US$ 7.21. This was approximately half the previous year's value, where prices averaged US$ 15.33.
For avocados, as a result of increased field production, enhanced packhouse and related handling efficiencies, exports surpassed the three million carton mark for the first time. This equates to 562 containers which sold with an average price for Hass of Euro 7.65 per carton (2022: Euro 7.95).
Our core credentials of being leaders in environmental sustainability and producing quality products with exemplary food standards, remain our points of difference which sets us apart from others. After the successful launch of the new Kakuzi brand (Growing Together) and the value-added products range, I am pleased to announce that the Kakuzi Farm Market, together with its new Nyama Choma restaurant is proving to be in demand. This will translate into increased sales for our value-added range of products.
The diversification of our products' markets remains a key focus for your Company. In time, new opportunities for avocado sales in India and Malaysia will provide alternative opportunities as export markets. Likewise, in macadamia, regional and non-traditional market opportunities are developing. However, the domestic market for many of our products is proving to be an exciting place as we explore new ways to bring quality food to this growing group of consumers.
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For more information:
Kakuzi Plc
Punda Milia Road, Makuyu
P.O. Box 24
01000 THIKA
Tel.: (060) 2033012
Email: mail@kakuzi.co.ke