Tea cups PHOTO| Courtesy

The poor invested year in the Tea industry was 2017,  the Tea Board blaming the unstable tea prices across the world. The majority of tea factories and cooperatives have registered a decline in their profit margin this closed financial year.

Williamson Tea and Kapchorua Tea issued KES 10.00 and KES 3.00 respectively as dividends to its shareholders in spite of their poor results for the year ending March 2017, which it blamed on weak crop prices through the year but as very high crops were followed by low crops, prices increased in the final quarter of the year.

Cost increased through the year further adding to poor performance. With crops currently low and therefore less tea available to buyers throughout Kenya, the two companies expect to see good prices for a period of time in the new financial year. There remains uncertainty over trade union disputes currently being presided over in the courts.

It is expected that the company will be able to implement efficiencies in operations, which will greatly assist competitiveness in the next few years. The dividend will accrue to members on the register at the close of business on 22nd August 2017.

The Tea factories Giants have released it structure of rebranding and restructuring of their business in order to clinch and get financial muscles in the current financial year.

Post a Comment

What is your say on this

Previous Post Next Post