Kakuzi Plc, a renowned agricultural cultivation and manufacturing enterprise partly controlled by Kenyan media mogul John Kimani, showed tenacity in its financial performance in 2023, with revenue reaching $40 million despite economic challenges.
Kakuzi’s revenue increased by 21.8% in 2023, from Ksh4.43 billion ($33.65 million) in 2022 to Ksh5.4 billion ($41 million) in 2023, despite a challenging operating environment marked by diminishing demand for macadamia in important countries like as Europe and the United States. This growth was driven by the strong performance of its avocado sector, which was aided by improved production and operational efficiencies.
While the macadamia market experienced tremendous hurdles, Kakuzi’s avocado industry shone brightly. Increased field production, combined with advances in pack house operations and related handling efficiencies, boosted avocado exports above three million cartons for the first time.
Despite a significant growth in revenue, Kakuzi’s profit declined by 46.4 percent in 2023. Profit decreased from Ksh845.8 million ($6.43 million) in 2022 to Ksh453.5 million ($3.44 million) in 2023, owing to greater operational costs and lower revenues from the macadamia business due to decreased global demand.
Kakuzi’s macadamia business lost Ksh241.8 million ($1.84 million) in 2023, compared to a net profit of Ksh439.6 million ($3.34 million) the year before. The company noted a large increase in direct manufacturing expenses, reaching Ksh3.56 billion ($27 million) in 2023 from Ksh2.42 billion ($18.4 million) the previous year, as a primary factor contributing to the decline in profitability.
Kakuzi Plc, a renowned Kenyan agriculture corporation, is confident in its long-term viability. The company’s product portfolio includes avocados, blueberries, macadamia nuts, tea, cattle, and commercial forestry.
The board of directors recommended a dividend of Ksh24 ($0.182) per share, for a total payout of Ksh470.4 million (about $3.57 million). This payout will benefit all shareholders, including Kimani, on June 15, the record date.
Kimani, a prominent stakeholder with a 33.3% holding in Kakuzi, is expected to earn a sizable percentage of the dividend payout. This solidifies his status as one of the wealthiest investors on the Nairobi Securities Exchange and a significant player in Kenya’s economic community.