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 2020 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: +254 (0) 20 423 0000
Cell: +254 (0) 719 039 000 Dropping Zone No.92
Email: admin@deloitte.co.ke www.deloitte.com
Tel: +254 (0) 20 423 0000
Cell: +254 (0) 719 039 000 Dropping Zone No.92
Email: admin@deloitte.co.ke 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
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