Limuru Tea, a listed agricultural firm, posted a pre-tax loss of KSh 50.02m from KSh 10.63m on rising labour costs. Net loss widened to KSh 52.51m with Earnings per Share down to negative KSh 21,88
The tea firm’s Total Equity eroded 25.6% to KSh 130.3m with Directors of the firm not declaring any dividends to shareholders.
Turnover fell 9% to KSh 131.01m hit by lower Mombasa auction prices and weak global demand. The balance sheet size shrunk 17.08% to KSh 163.47m. Green leaf output was up 1% to 3.753 m kilograms.
Last year was a difficult one for Limuru Tea, weighed down by lower selling prices and higher operating costs which drove deeper losses and eroded equity. The absence of a dividend reflects the focus on balance sheet repair. Cost management, price discovery and demand improvement will be key to restoring profitability and shareholder value.
Limuru Tea profit alert
The listed firm in the agricultural segment of the Nairobi Securities Exchange(NSE), had issued its third consecutive profit warning, indicating that its 2025 net profit expected to fall by over 25% compared to the prior year.
The tea firm attributed this projected decline to rising labour and operational costs – employee wages, factory operations, and transport expenses which have also surged.
Weak tea prices at the Mombasa Tea Auction – global demand pressures and local oversupply have suppressed auction prices, directly impacting revenue of the listed firm.
The tea firm is among a list of at least 12 NSE-listed companies that have issued profit warnings over its 2025 results, highlighting a tough operating environment for listed firms and Kenyan companies, particularly those in sectors sensitive to commodity prices and inflationary pressures.
Listed firms that have already issued profit drop warnings include CIC Insurance Group, Kenya Airways, Standard Chartered Bank Kenya, Kapchorua and Williamson Tea, Centum Investments, Liberty Kenya Holdings, TPS Eastern Africa (Serena Hotels) Shri Krishana Overseas, Umeme Limited and WPP ScanGroup.
The full extent of the 2025 net profit drops is now apparent beginning March 2026 when listed firms begun releasing their full year 2025 financials.
Profit warnings often precede short-term share price volatility, as market sentiment reacts to downward earnings revisions.
Rising input costs and weak commodity pricing are key factors to watch for other export-oriented and labour-intensive firms. Apart from Limuru Tea, other firms that have been hit hard by a strong Shilling include major exporters, especially in the agricultural and hospitality industry, where the likes of Kapchorua, Williamson Tea and Serena Group, sit.
Analysts caution investors to monitor Limuru Tea cost management strategies and auction price trends to gauge its recovery potential.
Limuru Tea owns 282 hectares of tea plantations situated four kilometres to the east of Limuru Town.
The listed firm is an out grower to Browns East Africa Plantations PLC(BEAP). BEAP provides management services to Limuru Tea PLC’s in manufacturing, selling and marketing of its tea.
The Limuru Tea estate green tea leaf is manufactured in the nearby Mabroukie factory from where it is sold for export.
The top shareholders of Limuru Tea include Ekaterra Holco UK Limited, which owns 98.56% of Lipton Teas and Infusions Kenya Plc, which holds the majority stake in Limuru Tea. Other shareholders include B Commodities ME(FZE) and Unilever Kenya.
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