Kakuzi Plc reported a sharp collapse in half-year earnings. Profit before tax fell 97.6% to KSh 10.4 million for the six months ended 30 June 2026, down from KSh 435.2 million in the same period last year.
Avocado harvesting at Kakuzi. The company posted a near-total wipeout of half-year profits after shipping disruptions and soft commodity markets hit its main crops.
Net profit after tax dropped to KSh 7.1 million from KSh 295.5 million. Earnings per share sank to KSh 0.36 from KSh 15.08. Group revenue declined 26% to KSh 1.12 billion from KSh 1.51 billion. The board skipped the interim dividend and issued a full-year profit warning.
The company expects net earnings for the whole of 2026 to be at least 25% lower than 2025.
Key Numbers at a Glance
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Group Revenue | KSh 1.12 billion | KSh 1.51 billion | -26% |
| Profit Before Tax | KSh 10.4 million | KSh 435.2 million | -97.6% |
| Net Profit | KSh 7.1 million | KSh 295.5 million | -97.6% |
| Earnings Per Share | KSh 0.36 | KSh 15.08 | -97.6% |
| Cash & Bank Balances | KSh 274.6 million | KSh 890.3 million | -69% |
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What Drove the Collapse
Two main crops suffered heavy damage. Avocado operating profit fell to KSh 215.9 million from KSh 394.9 million. Shipping routes to Europe were disrupted by the Middle East conflict. Vessels had to divert around the Cape of Good Hope. The longer journeys delayed deliveries, damaged fruit quality and cut realised prices. A well-supplied European market, fed by high volumes from Peru and other producers, added further price pressure. Dry weather late in 2025 also reduced expected crop volumes.
Macadamia operating profit dropped to KSh 68.2 million from KSh 318.8 million. Global supply rose while demand stayed weak. Saleable kernel production was slightly higher than last year, but sales volumes fell.
Cash generation suffered. Net cash used in operating activities reached KSh 739.7 million. Cash and bank balances fell from KSh 890.3 million to KSh 274.6 million.
Segments That Held Up
Not every division was hit. Forestry operating profit rose to KSh 73.3 million from KSh 42.9 million on strong demand for poles. Blueberries continued their growth path, posting KSh 15.1 million operating profit, up from KSh 13.4 million. Tea and livestock met internal targets. Livestock broke even while tea showed slight stabilisation.
These smaller units provided a limited buffer but could not offset the damage in avocado and macadamia.
Related:Kakuzi PLC — Avocados, Macadamia, Tea & Agri-Products Kenya | Business Listings Kenya
Profit Warning and Outlook
Chairman Nicholas Ng’ang’a said the board expects full-year net earnings for 2026 to be at least 25% lower than 2025. The warning cites the dry conditions of late 2025, the Middle East conflict and the soft macadamia market.
Management said its strategic priorities remain unchanged. The company continues to grow avocado and macadamia production as existing orchards mature. It is also expanding into new superfoods and seeking markets beyond Europe, including China and India, to reduce dependence on the difficult European logistics corridor.
No interim dividend was recommended.
Kakuzi remains one of Kenya’s largest listed agribusinesses with significant acreage under avocado, macadamia and forestry. The half-year results show how quickly external shocks in shipping and commodity markets can erase short-term profits even for a well-established producer.
Investors will now watch second-half crop volumes, progress on new export markets and how the company manages its reduced cash position through the rest of the year.
Sources
- Kakuzi Plc Half-year Financial Report (Investegate)
- Kakuzi Plc Profit Warning Announcement
- Company interim financial statements for the six months ended 30 June 2026