Listed tea plantations firm, Limuru Tea has blamed bad weather for the Sh4.5 million after tax loss it has reported for the half year ending June 2017.
Company chairman Richard Korir said the firm’s tea production fell by 45 percent compared to the same period in 2016.
“In the first half of 2017, the company produced 926 Tons of green leaf, which in turn was manufactured into 216 Tons of black tea. This was a 45 percent decrease in Made Tea volumes compared to the first half of 2016,” said Korir in explanatory notes accompanying the firm’s financial statements issued today.
Revenues decreased by 43 percent to Sh34 million in the period compared to Sh59 million realised in the same period of 2016.
“This decrease in the first half of 2017 was due to a drop in production volumes as a result of unfavourable weather conditions experienced in first quarter,” said Korir.
The firm warned investors that full year results could be depressed if the weather does not improve.
“If the current weather conditions persist for the rest of the year, the full year crop is e expected to be lower than last year, hence the 2017 performance therefore is expected to be modest,” said Korir.