Annual Financial Report

KAKUZI LIMITED

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

Condensed consolidated statement of profit or loss and other comprehensive income

Restated

31 December 2016

31 December 2015

Shs'000

Shs'000

Sales

2,651,199

2,481,844

Profit before fair value gain in non-current biological assets and income tax

690,543

584,270

Fair value gain in non-current biological assets

67,236

83,071

Profit before income tax

757,779

667,341

Income tax expense

(195,354

)

(207,627

)

Profit for the year

562,425

459,714

Other comprehensive income:

Items that are not reclassified to profit or loss:

Remeasurement of post employment benefit obligations (net of tax)

5,936

4,955

Total comprehensive income

568,361

464,669

Earnings per share (Shs):

Basic and diluted earnings per stock unit

28.70

23.45

Condensed Consolidated Statement of Financial Position

Restated

31 December 2016

31 December 2015

Shs'000

Shs'000

EQUITY

Share capital

98,000

98,000

Other reserves

14,872

8,936

Retained earnings

3,615,786

3,170,961

Proposed dividends

117,600

98,000

Total equity

3,846,258

3,375,897

Non-current liabilities

801,418

712,968

4,647,676

4,088,865

REPRESENTED BY

Non-current assets

3,015,067

2,817,369

Current assets

618,771

465,272

Cash and bank balances

1,430,576

1,175,434

Current liabilities

(416,738

)

(369,210

)

Net current assets

1,632,609

1,271,496

4,647,676

4,088,865

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 results for the year show an increased profit before tax of Ksh 758 million against a restated profit for 2015 of Ksh 667 million. The 2015 profits have been restated due to changes in the Accounting Standards. The earnings per stock unit increased from Ksh 23.45 to Ksh 28.70. The improved profit reflects the favourable market demand for our two core crop products (avocado and macadamia) as well as the continued growth of these operations in keeping with Kakuzi's agricultural development strategy.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2016 of Shs 6.00 per stock unit (2015: Shs 5.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2017 to the shareholders on the members' register at the close of business on Wednesday, 31 May 2017.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Monday 15 May 2017 at 12.00 Noon at Fairmont The Norfolk Hotel.

BY ORDER OF THE BOARD

G H Mclean

Chairman

28 March 2017