Kakuzi PLC - plantation operator in Kenya - Posts pretax profit in 2020, in Kenyan shillings, of KES847.5 million, around GBP5.6 million, down 16% from KES1.01 billion a year prior. Sales increase by 25% to KES3.61 billion from KES2.89 billion. Says these results include the cost of the company defending itself from UK law firm Leigh Day who wished to bring Kakuzi into the jurisdiction of the UK, for which Kakuzi was dropped as a party to the UK proceedings in July last year.
Kakuzi investor Camellia PLC in February said the allegations, which pertained to violent acts committed by Kakuzi security guards in Kenya, cost up to GBP4.6 million to settle.
The lawsuit, filed on behalf of 79 Kenyans at London's High Court, accuses the subsidiary Kakuzi of employing security guards alleged to have perpetrated horrific abuses since 2009.
Kakuzi said on Friday it achieved "robust" results for the year, despite the uncertainty in its main sales markets caused by the Covid-19 pandemic. Pays final dividend of KES18.00 per share, up 29% from KES14.00 per share.
"Both avocado and macadamia export volumes were higher than 2019 but these were not sufficient to mitigate a significant reduction of 34% in the price of avocados. The market prices in 2019 were at record levels whilst 2020's prices were more in line with medium term average. The contribution to the overall results by macadamia and sales of wood products was encouraging and reflects the benefits of having a diversified product portfolio. The significant increase in tea production in Kenya has impacted negatively on price levels and consequently the profitability for this crop," says Kakuzi.
Current stock price: 92.50 pence
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Camellia (CAM)
Kakuzi (KAKU)