Half-year Report

KAKUZI PLC

EXTRACT FROM THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD OF SIX MONTHS TO 30 JUNE 2017

The unaudited results for the Kakuzi Group for the period of six months to 30 June 2017 and the comparative figures for the previous year are as follows:

Condensed Consolidated Statement of Comprehensive Income

30 June 2017

Restated

30 June 2016

Shs'000

Shs'000

Sales

547,277

437,347

Profit before fair value gain in biological assets and income tax

85,462

44,523

Fair value gain in biological assets

20,000

19,054

Profit before income tax

105,462

63,577

Income tax expense

(32,259

)

(18,189

)

Profit for the period

73,203

45,388

Other Comprehensive Income

-

-

Total comprehensive income

73,203

45,388

Total comprehensive income attributable to

equity holders of the company:

73,203

45,388

Shs

Shs

Earnings per share attributable to equity holders of the company:

Basic and diluted earnings per ordinary share

3.73

2.32

Condensed Consolidated Statement of Financial Position

Restated

30 June 2017

30 June 2016

31 December 2016

Shs'000

Shs'000

Shs'000

EQUITY

Share capital

98,000

98,000

98,000

Other reserves

14,872

8,936

14,872

Retained earnings

3,688,989

3,216,349

3,615,786

Proposed dividends

-

-

117,600

Total equity

3,801,861

3,323,285

3,846,258

Non-current liabilities

836,733

734,181

801,418

4,638,594

4,057,466

4,647,676

REPRESENTED BY

Non-current assets

3,037,497

2,906,372

3,015,067

Current assets

884,675

766,713

618,771

Cash and cash balances

1,143,772

731,663

1,430,576

Current liabilities

(427,350

)

(347,282

)

(416,738

)

Net current assets

1,601,097

1,151,094

1,632,609

4,638,594

4,057,466

4,647,676

Overview:

The above is an extract from the interim financial statements which have been prepared in accordance with the International Financial Reporting Standards (IFRS).

The profit before tax for the period to 30 June 2017 was KSh105.5 million compared to a restated profit of KSh63.6 million for the same period last year. The 2016 half year profits have been restated due to changes in the Accounting Standards.

During the period under review, tea profits were depressed due to lower volumes partly offset by better prices arising from dry weather conditions in quarter one. Avocado results are in line with last year's performance whilst macadamia results are affected by lower than expected yields.

It is difficult, at present, to predict financial performance for the year with erratic supply and demand, climatic conditions together with exchange rates to contend with.

The Directors do not recommend the payment of an Interim Dividend.

BY ORDER OF THE BOARD

G H MCLEAN

CHAIRMAN

04 August 2017