Kakuzi Plc reported a 66% decline in its half-year net profit to KSh 117.5 million for the first six months of 2023, compared to KSh 341.3 million in the same period in 2022.
The firm attributed the poor performance to a loss of KSh 329 million in its macadamia business, which was hit by a glut in the global macadamia market that reduced the prices and demand for the nuts.
The firm said it is looking to recover from the macadamia slump by increasing its domestic retail sales of value-added macadamia products, such as ready-to-eat nuts, macadamia flour and cold-pressed oil.
The firm’s Board of Directors said that the global macadamia glut affects all major exporters from Kenya, Australia and South Africa, and is likely to continue for the rest of 2023 and possibly into 2024.
On the other hand, the firm’s avocado business recorded a 127% increase in profits to KSh 654.8 million, driven by higher exports to Europe and China.
The firm expects further growth in the second half of the year as it starts exporting to Malaysia and India.
Chris Flowers, the Managing Director of Kakuzi Plc, said that the firm is committed to delivering quality products and services to its customers and stakeholders, despite the challenges in the macadamia market.