Profit Warning Announcement

RNS Number : 3348S

Kakuzi Ld

30 November 2012

 



KAKUZI LIMITED PROFIT WARNING ANNOUNCEMENT FOR THE FINANCIAL YEAR ENDING 31ST DECEMBER 2012 Kakuzi Limited ('The Group') makes this announcement pursuant to the Capital Markets Authority regulations for publicly listed companies. The Group currently forecasts that earnings for financial year 2012 may be at least 25% lower than those of financial year 2011. This anticipated drop in full year earnings is, in part, as a result of: i) Downward pricing pressure for our export crops due to recessionary trends particularly in Europe and the strengthening of Kenya Shilling against the Euro from an average of Kshs 134 in the second half of financial year 2011 to around Kshs 108 in financial year 2012. ii) An exceptional release of a provision amounting to Kshs 109 million, as a result of the withdrawal of the Delmonte Kenya Limited claim, made in financial year 2011. iii) The Completion of the sale of the subsidiary company, Siret Tea Company Limited, on 31st August 2012 resulting in only eight months of trading being consolidated in 2012. The Group is taking all necessary measures to maintain the Group's profitability and positive cash flow for the financial year 2012. This profit warning announcement is based on the performance indicated by the unaudited results to 30th September 2012 with reference to information currently available. K W Tarplee Chairman 29 November 2012

 

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