Listed superfoods producer Kakuzi Plc has announced a Ksh171. 1 million half-year pretax profit, boosted by avocado exports, on the back of a difficult trading period due to a glut of macadamia in the global market. The firm recorded a more than double profit lift from avocado exports, which earned Ksh654.8 million, up from Ksh288.6 million in a similar period last year.
Kakuzi Managing Director, Mr Chris Flowers, said the firm’s bottomline had been impacted by a Ksh329 million sectoral loss from its macadamia business. To mitigate further losses in the macadamia business, Kakuzi is currently pursuing a value-addition strategy to market the produce locally.
While the macadamia business slowed, Kakuzi’s avocado sales accelerated, with exports to Europe and China peaking. Further avocado exports business growth is expected in the year’s second half as exports to Malaysia and India begin to dispatch.
“The global macadamia glut continues to affect all leading international exporters from Kenya, Australia and South Africa,” Mr Flowers said. “To mitigate the losses, we have adopted a local marketing strategy geared at availing value added Macadamia products, including ready-to-eat nuts, macadamia flour and cold-pressed oil.”
Across the other product lines, Kakuzi has expressed confidence in its blueberry venture. “Although our blueberry volumes are still significantly low, the revenue stream remains firmly within the business plans and inspires further investments. Further afield, the performance of the tea, forestry, livestock, and arable land operations continue to play their important role in our crop portfolio,” said Mr Nick Ng’ang’a, Kakuzi chairman.
Early August, Kakuzi formally adopted a new corporate identity that underscores its commitments to agricultural development for the domestic and export markets. The new Kakuzi brand is aligned with the national agricultural transformation agenda, with sustainability and climate-smart agriculture at its core.
The new Kakuzi identity, the firm’s first defined brand visual system and strategy in 95 years, also signifies a transition to the contemporary world of superfoods growing for both the domestic and export markets.
As part of the new branding, Kakuzi has also launched a range of private-label consumer products developed over the last two years for the domestic market, including ready-to-eat macadamia, gluten-free macadamia flour, cold-pressed macadamia oil and blueberry packs.