Annual Financial Report

KAKUZI LIMITED

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

Condensed Consolidated Statement of Comprehensive Income

31 December 2014

31 December 2013

Shs'000

Shs'000

Sales

1,689,917

1,384,375

Profit before fair value gain in Biological assets and income tax

153,486

142,989

Fair value gain in Biological assets

79,313

96,317

Profit before income tax

232,799

239,306

Income tax expense

(72,594

)

(74,278

)

Profit for the year

160,205

165,028

Other comprehensive income:

Items that are not classified to profit and loss:

Remeasurements of post employment benefit obligations (net of tax)

(6,005

)

11,275

Total comprehensive income

154,200

176,303

Earnings per share (Shs):

Basic and diluted earnings per stock unit

8.17

8.42

Condensed Consolidated Statement of Financial Position

31 December 2014

31 December 2013

Shs'000

Shs'000

EQUITY

Share capital

98,000

98,000

Other reserves

3,981

9,986

Retained earnings

2,809,247

2,722,542

Proposed dividends

73,500

73,500

Total equity

2,984,728

2,904,028

Non-current liabilities

695,305

666,334

3,680,033

3,570,362

REPRESENTED BY

Non-current assets

2,676,369

2,546,888

Current assets

207,395

265,897

Cash and bank balances

973,690

904,758

Current liabilities

(177,421

)

(147,181

)

Net current assets

1,003,664

1,023,474

3,680,033

3,570,362

OVERVIEW:

The above is an extract from the financial statements which have been prepared in accordance with the International Financial Reporting Standards (IFRS) and audited by PricewaterhouseCoopers, Certified Public Accountants of Kenya, and on which an unqualified opinion has been issued.

The profit for the year was similar to that of the previous year. Avocados, with increased volumes, were the significant contributor to profit mitigating the downward trend on returns occasioned by the very poor market prices of Tea in 2014.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2014 of 75% equivalent to Shs 3.75 per stock unit (2013: Shs 3.75) subject to shareholders approval. The dividend shall be paid on or about 30 June 2015 to the shareholders on the members' register at the close of business on Friday, 29 May 2015.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday, 26 May 2015 at 12.00 Noon at Nairobi Serena Hotel.

BY ORDER OF THE BOARD

K W Tarplee

Chairman

24 March 2015