Annual Financial Report - Replacement

RNS Number : 9912S

Kakuzi Ld

22 March 2021

 

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

Summarised Consolidated Statement of Profit or Loss and other Comprehensive Income
			31 December 2020		31 December 2019
			Shs'000		Shs'000
Sales			3,608,941		2,888,662
Profit before fair value gain in non-current biological assets and income tax			789,719		931,063
Fair value gain in non-current biological assets			57,813		83,414
Profit before income tax			847,532		1,014,477
Income tax expense			(225,498	)	(301,038	)
Profit for the year			622,034		713,439
Other Comprehensive Income:
Items that are not reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (net of tax)			490		11,810
Total comprehensive income			622,524		725,249
			Shs		Shs
Earnings per share:
Basic and diluted earnings per ordinary share			31.74		36.40

Summarised Consolidated Statement of Financial Position
	31 December 2020		31 December 2019
	Shs'000		Shs'000
EQUITY
Share capital	98,000		98,000
Other reserves	31,953		31,463
Retained earnings	5,083,696		4,814,462
Proposed dividends	352,800		274,400
Total equity	5,566,449		5,218,325
Non-current liabilities	1,080,470		1,007,047
	6,646,919		6,225,372
REPRESENTED BY
Non-current assets	3,990,042		3,868,015
Current assets	1,246,650		896,890
Cash and cash balances	1,670,124		1,696,130
Current liabilities	(259,897)		(235,663)
Net current assets	2,656,877		2,357,357
	6,646,919		6,225,372

Summarised Consolidated Statement of Cash flows
			31 December 2020		31 December 2019
			Shs'000		Shs'000
Cash and cash equivalents at the beginning of the year			1,696,130		1,500,935
Net cash generated from operating activities			541,255		785,578
Net cash used in investing activities			(358,206	)	(406,500	)
Net cash used in financing activities			(274,413	)	(176,400	)
Net exchange gains/(losses) on foreign currency cash & cash equivalent			65,358		(7,483	)
(Decrease)/increase in cash and cash equivalents			(26,006	)	195,195
Cash and cash equivalents at the end of the year			1,670,124		1,696,130

Summarised Consolidated Statement of Changes in Equity
	Share capital		Other reserves		Retained earnings		Proposed dividends		Total Equity
	Shs'000		Shs'000		Shs'000		Shs'000		Shs'000
At 1.1.2020	98,000		31,463		4,814,462		274,400		5,218,325
Profit for the year	-		490		622,034		-		622,524
Dividends - final for 2019	-		-		-		(274,400)		(274,400)
Proposed for 2020	-		-		(352,800)		352,800		-
At 31.12.2020	98,000		31,953		5,083,696		352,800		5,566,449

OVERVIEW:

The Company achieved robust results for the year, despite the uncertainty in our main sales markets caused by the COVID-19 Pandemic, with a pre-tax profit of Shs 848 million against Shs 1,014 million last year. Both avocado and macadamia export volumes were higher than 2019 but these were not sufficient to mitigate a significant reduction of 34% in the price of avocados.  The market prices in 2019 were at record levels whilst 2020's prices were more in line with medium term average.  The contribution to the overall results by macadamia and sales of wood products was encouraging and reflects the benefits of having a diversified product portfolio. The significant increase in tea production in Kenya (569 million kg v 458 million kg in 2019) has impacted negatively on price levels and consequently the profitability for this crop.

The results also include the cost of the Company defending itself from a UK law firm who wished to bring Kakuzi into the jurisdiction of the United Kingdom.  As previously announced, Kakuzi was dropped as a party to the UK proceedings in July 2020.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2020 of Shs 18.00 per ordinary share (2019: Shs 14.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2021 to the shareholders on the members' register at the close of business on Monday, 31 May 2021.

The summarised consolidated financial results do not include all of the disclosures required for full financial statements and should be read in conjunction with the Annual Report and consolidated financial statements for the year ended 31 December 2020.  

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday,18 May 2021 at 12.00 Noon by electronic means.

BY ORDER OF THE BOARD

NICHOLAS NG'ANG'A

CHAIRMAN 

18 MARCH 2021

Deloitte_●

Deloitte & Touche

Certified Public Accountants (Kenya) Deloitte Place

Waiyaki Way, Muthangari

P.O. Box 40092 - GPO 00100 Nairobi

Kenya

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

Tel: [phone]

Cell: [phone] Dropping Zone No.92

Email: [e-mail] www.deloitte.com

INDEPENDENT AUDITORS' REPORT ON THE SUMMARISED COSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF KAKUZI PLC

Opinion

The accompanying summarised consolidated financial statements of Kakuzi Plc and its subsidiaries (the "Group"), which comprise the summarised consolidated statement of financial position as at 31 December 2020, the summarised consolidated statement of profit or loss and other comprehensive income, the summarised consolidated statement of changes in equity and the summarised  consolidated statement of cash flows for the year then ended, are derived from the audited financial statements of the Group for the year ended 31 December 2020.

In our opinion, the accompanying summarised consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of the Group, in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 (''the Regulations'') as applicable to summary  financial statements.

Summarised consolidated financial Statements

The summarised consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards as applicable to annual financial statements. Reading the summarised consolidated financial statements and the auditors' report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of the Group and the auditors' report thereon.

The audited financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 18 March 2021. That report also includes the communication of a key audit matter.

Directors' responsibility for the summarised consolidated financial statements

The Directors are responsible for the preparation of the summarised consolidated financial statements in accordance with the requirements of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulation, 2002 Requirements as applicable to summarised financial statements.

Auditors' responsibility

Our responsibility is to express an opinion on whether the summarised consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary  Financial Statements.

Certified Public Accountants (Kenya)  18 March 2021

FCPA Anne Muraya, Practising certificate No. 1697.

Signing partner responsible for the independent audit

18 March 2021

 

END

 

 

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