Kakuzi Plc has issued a profit warning, stating that its net earnings for the year ending December 31, 2026, may be at least 25% lower than those reported for the year ended December 31, 2025.
In a statement dated August 26 by Chairman Nicholas Ng’ang’a, the warning is based on trading information, market forecasts and unaudited results for the six months ended June 30, 2026, among other information available to the company’s Board.
Kakuzi said exceptionally dry conditions on its farms at the end of 2025 are expected to negatively affect its results for the year.
“Exceptionally dry conditions on the farm at the end of 2025 and the Middle East conflict along with a softening of the international macadamia market are anticipated to negatively impact results,” the warning read in part.
The company also cited the Middle East conflict as a factor expected to affect its financial performance.
It further said a softening of the international macadamia market is expected to negatively impact its 2026 results.
Kakuzi Outlines Strategic Priorities
Despite the expected decline in earnings, Kakuzi said its strategic priorities remain unchanged as operating conditions continue to shift.
The company plans to increase avocado and macadamia production as its existing orchards reach maturity.
Kakuzi also plans to diversify into new superfoods and geographic markets as part of its strategy.
“We remain guided by the belief that a long-term view, sufficient diversification, and disciplined execution are what allow Kakuzi to withstand short-term shocks, whether from markets, weather, or geopolitics, while continuing to build sustainable shareholder and stakeholder value,” it stated.
Kakuzi Half-Year Results
Kakuzi Plc reported a group profit before tax of KSh10.4 million for the half-year, down sharply from KSh435.2 million recorded in the same period in 2025.
“Group profit before tax fell to KSh 10.4 million for the half-year (Half-year 2025: KSh 435.2 million),” the company stated.
The company’s avocado operating profit fell to KSh 215.9 million, compared with KSh 394.9 million in the first half of 2025. Kakuzi attributed the decline to price pressure, a lower anticipated crop, and disrupted shipping routes.
According to the company statement, the global avocado market was well supplied during the period, pressuring prices, particularly in the latter part of the half-year.
Macadamia operating profit dropped to KSh68.2 million, from KSh318.8 million in the first half of 2025, following increased global supply and weaker demand.
Other Business Segments
Blueberry recorded a half-year operating profit of KSh15.1 million, up from KSh13.4 million in the same period in 2025, despite freight challenges linked to the Middle East conflict.
Forestry operating profit increased to KSh73.3 million, compared with KSh42.9 million a year earlier, supported by continued strong demand for poles.
Kakuzi said tea and livestock continued to perform in line with expectations, with the tea market slightly strengthening.
The company said year-to-date trading in its two core crops was affected by geopolitical instability along key shipping routes into Europe, lower anticipated avocado volumes, and weaker demand for macadamia.
From their statement, Kakuzi’s directors do not recommend payment of an interim dividend.
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