Last checked at 29 Mar 2019 07:00
KAKUZI PLC
ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018
Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income | |||||||
31 December 2018 | 31 December 2017 | ||||||
Shs'000 | Shs'000 | ||||||
Sales | 3,152,831 | 2,823,926 | |||||
Profit before fair value gain in non-current biological assets and income tax | 610,001 | 766,324 | |||||
Fair value gain in non-current biological assets | 74,082 | 82,799 | |||||
Profit before income tax | 684,083 | 849,123 | |||||
Income tax expense | (202,489 | ) | (257,480 | ) | |||
Profit for the year | 481,594 | 591,643 | |||||
Other Comprehensive Income: | |||||||
Items that are not reclassified to profit or loss: | |||||||
Remeasurement of post-employment benefit obligations (net of tax) | 3,046 | 1,735 | |||||
Total comprehensive income | 484,640 | 593,378 | |||||
Shs | Shs | ||||||
Earnings per share (Shs): | |||||||
Basic and diluted earnings per ordinary share | 24.57 | 30.19 | |||||
Condensed Consolidated Statement of Cash flows | |||||||
31 December 2018 | 31 December 2017 | ||||||
Shs'000 | Shs'000 | ||||||
Cash and cash equivalents at the beginning of the year | 1,648,749 | 1,430,576 | |||||
Net cash generated from operating activities | 361,190 | 924,954 | |||||
Net cash used in investing activities | (369,462 | ) | (587,801 | ) | |||
Net cash used in financing activities | (137,200 | ) | (117,600 | ) | |||
Net exchange losses on foreign currency cash & cash equivalent | (2,342 | ) | (1,380 | ) | |||
(Decrease)/increase in cash and cash equivalents | (147,814 | ) | 218,173 | ||||
Cash and cash equivalents at the end of the year | 1,500,935 | 1,648,749 | |||||
Condensed Consolidated Statement of Financial Position | ||||||||||
31 December 2018 | 31 December 2017 | |||||||||
Shs'000 | Shs'000 | |||||||||
EQUITY | ||||||||||
Share capital | 98,000 | 98,000 | ||||||||
Other reserves | 19,653 | 16,607 | ||||||||
Retained earnings | 4,375,423 | 4,070,229 | ||||||||
Proposed dividends | 176,400 | 137,200 | ||||||||
Total equity | 4,669,476 | 4,322,036 | ||||||||
Non-current liabilities | 881,602 | 807,190 | ||||||||
5,551,078 | 5,129,226 | |||||||||
REPRESENTED BY | ||||||||||
Non-current assets | 3,624,125 | 3,338,922 | ||||||||
Current assets | 815,982 | 758,455 | ||||||||
Cash and cash balances | 1,500,935 | 1,648,749 | ||||||||
Current liabilities | (389,964 | ) | (616,900 | ) | ||||||
Net current assets | 1,926,953 | 1,790,304 | ||||||||
5,551,078 | 5,129,226 | |||||||||
Condensed Consolidated Statement of Changes in Equity | ||||||||||
Share capital | Other reserves | Retained earnings | Proposed dividends | Total Equity | ||||||
Shs'000 | Shs'000 | Shs'000 | Shs'000 | Shs'000 | ||||||
| ||||||||||
On 1.1.2018 | 98,000 | 16,607 | 4,070,229 | 137,200 | 4,322,036 | |||||
Profit for the year | - | 3,046 | 481,594 | - | 484,640 | |||||
Dividends - final for 2017 | - | - | - | (137,200 | ) | (137,200 | ) | |||
- proposed for 2018 | - | - | (176,400) | 176,400 | - | |||||
On 31.12.2018 | 98,000 | 19,653 | 4,375,423 | 176,400 | 4,669,476 | |||||
OVERVIEW:
The results for 2018 reflect a pre-tax profit of Shs 684 million compared to Shs 849 million in 2017. The lower profits are as a result of lower avocado prices achieved, due to a heavily over supplied market in Europe. Macadamia and forestry profits improved over the previous year as a result of increased production from our orchards and a rise in the demand for wood products. Earnings per share was Shs 24.57 in 2018 compared to Shs 30.19 in 2017.
DIVIDEND:
The Directors recommend the payment of a first and final dividend for the financial year 2018 of Shs 9.00 per ordinary share (2017: Shs 7.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2019 to the shareholders on the members' register at the close of business on Friday, 31 May 2019.
ANNUAL GENERAL MEETING:
The Annual General Meeting of the Company will be held on Tuesday 14 May 2019 at 12.00 Noon at Nairobi Serena Hotel.
BY ORDER OF THE BOARD
G H MCLEAN
CHAIRMAN
28 MARCH 2019
Deloitte●
Deloitte & Touche
Certified Public Accountants (Kenya) Deloitte Place
Waiyaki Way, Muthangari
P.O. Box 40092 - GPO 00100 Nairobi
Kenya
Tel: +254 (0) 20 423 0000
Cell: +254 (0) 719 039 000 Dropping Zone No.92
Email: admin@deloitte.co.ke www.deloitte.com
Tel: +254 (0) 20 423 0000
Cell: +254 (0) 719 039 000 Dropping Zone No.92
Email: admin@deloitte.co.ke www.deloitte.com
INDEPENDENT AUDITORS' REPORT ON THE CONDENSED COSOLIDATED FINANCIAL STATEMENTS
TO THE SHAREHOLDERS OF KAKUZI PLC
Opinion
The accompanying condensed consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended, are derived from the audited financial statements of the Group for the year ended 31 December 2018.
In our opinion, the accompanying condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of the Group, in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 (''the Regulations'') as applicable to summary financial statements.
Condensed consolidated financial Statements
The condensed consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards as applicable to annual financial statements. Reading the condensed consolidated financial statements and the auditors' report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of the Group and the auditors' report thereon.
The audited financial statements and our report thereon
We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 28 March 2019. That report also includes the communication of a key audit matter.
Directors' responsibility for the condensed consolidated financial statements
The Directors are responsible for the preparation of the condensed consolidated financial statements in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 Requirements as applicable to condensed financial statements.
Auditors' responsibility
Our responsibility is to express an opinion on whether the condensed consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.
CPA Anne Muraya, Practising certificate No. 1697.
Signing partner responsible for the independent audit
28 March 2019