Poor avocado harvest cuts profit for Kenyan company
Kenyan fruit and tea producer Kakuzi Ltd has recorded an 8.4% profit fall for the 2010 calendar year with a net profit after tax of US$3.69 million (311 million shillings).
In announcement to the Nairobi Stock Exchange (NSE), the company said the decline was due to a lower avocado crop, while a financial payment dispute with Delmonte Kenya Ltd continued.
"Net returns on the avocado crop in particular the Fuerte variety was lower than the previous year however profit on the Tea operations was ahead of 2009 levels," the announcement said.
"The company has received a claim for an alleged overpayment of Shs 109 million (US$1.29 million) from Delmonte Kenya Ltd (DMKL) following the discovery of an alleged error made by DMKL in calculating the sale price of pineapples for the joint venture for the years 2007 and 2008.
"Although the matter is still to be concluded, the directors consider it prudent to make a provision for this claim as an adjustment to prior years financial statements."
The company will host its annual meeting at the Nairobi Serena Hotel on May 25.