Sasini PLC, a Kenyan agricultural company, warned investors Wednesday that its net earnings for the fiscal year ending September 30 are projected to be 25% lower than the previous year.
In a statement, Sasini cited “very high cost of production due to unplanned escalation of input costs, the severe drought witnessed in the first six months of the financial year which affected production volumes negatively, lower than expected coffee prices, and the effects of the severe recession in the world commodity markets” as the major challenges impacting earnings.
“The major challenges during the year were occasioned by the very high cost of production due to unplanned escalation of input costs, the severe drought witnessed in the first six months of the financial year which affected production volumes negatively, lower than expected coffee prices, and the effects of the severe recession in the world commodity markets escalated by geopolitical events and factors that affected our macadamia business,” the statement read.
Sasini Board Chairman Dr. James Boyd McFie said the board will continue to exercise strong oversight of the agricultural company’s operations.
“The Board endeavours to continue its strong oversight of the business,” McFie said in the statement.
Sasini cultivates and processes coffee and macadamia nuts in Kenya.
