Profits halve at Kenya's Kakuzi as tea, avocado turnover drops - CNBC Africa

Profits halve at Kenya's Kakuzi as tea, avocado turnover drops

East Africa

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Kenya is the world's leading exporter of black tea. PHOTO: Getty Images

This was hurt by a steep decline in the turnover of its avocado and tea divisions.

Kakuzi, which also produces pineapples, posted a full-year pre-tax profit of 239 million shillings in 2013, down 50 per cent from 479 million shillings in 2012.

"The major impact on profits arises from our avocado and tea operations, both of which are significantly down on turnover and profit compared with 2012," the company said in a statement, providing no further details.

(Watch Video: Kenya Tea Auction Price Declines)

In November, the grower warned that 2013 earnings would be down by at least 25 per cent due to falling prices for tea and lower production of avocados.

Kenyan tea growers last year said tea prices at auction had hit a seven-year low at the end of September, down 30 per cent on the same period a year before.

Kenya is the world's leading exporter of black tea, and the crop is a major foreign exchange earner in east Africa's largest economy, alongside horticulture and tourism.

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