Kakuzi 2025 results: profit rebound and a doubled dividend
Kakuzi has swung back to profit in 2025 and proposed doubling the dividend. Management reports a pre-tax profit of Ksh 568.4 million versus a pre-tax loss of Ksh 166.7 million in 2024, with earnings per share of Ksh 19.77. It is a clear turnaround, even as the company flags ongoing geopolitical pressures weighing on avocado operations.
Headline numbers investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Sales | Ksh 5,368.6 million | Ksh 4,791.7 million | +12.0% |
| Profit/(loss) before fair value gain and tax | Ksh 470.2 million | (Ksh 404.7 million) | Turnaround |
| Fair value gain on non-current biological assets | Ksh 98.2 million | Ksh 238.0 million | -58.7% |
| Profit/(loss) before tax | Ksh 568.4 million | (Ksh 166.7 million) | Turnaround |
| Net profit/(loss) | Ksh 387.6 million | (Ksh 131.7 million) | Turnaround |
| Earnings per share | Ksh 19.77 | (Ksh 6.72) | n/a |
| Operating cash flow | Ksh 853.2 million | Ksh 474.7 million | +79.7% |
| Cash and cash equivalents (year end) | Ksh 1,533.2 million | Ksh 1,106.7 million | +38.6% |
Dividend doubled: Ksh 16 per share and key dates
The Board recommends a first and final dividend of Ksh 16 per share for 2025, up from Ksh 8 per share in 2024. Based on the proposed dividend of Ksh 313.6 million and reported profit of Ksh 387.6 million, the implied payout ratio is about 81%.
- Record date: Friday, 29 May 2026
- Payment date: On or about 15 June 2026
It is a confident signal after a loss-making 2024, though the high payout leaves less headroom if trading turns choppy.
What drove the turnaround? Underlying operations did the heavy lifting
Kakuzi separates its performance into two parts: operating profit before fair value gains, and the fair value movement on biological assets. Biological assets are living plants or animals – in Kakuzi’s case, orchards and similar – measured at market value under accounting rules. These valuations can sway profit but do not generate cash.
In 2025, the fair value gain actually fell sharply to Ksh 98.2 million from Ksh 238.0 million. Despite that headwind, profit before fair value gains and tax flipped from a loss of Ksh 404.7 million to a profit of Ksh 470.2 million. That tells us the core operations improved materially, helped by a 12.0% rise in sales and mitigation of the issues that hurt 2024.
Cash generation and balance sheet: stronger and more liquid
Cash flow from operations jumped to Ksh 853.2 million (2024: Ksh 474.7 million), comfortably funding investment outflows of Ksh 268.2 million and financing outflows of Ksh 156.9 million. Year-end cash and cash equivalents rose to Ksh 1,533.2 million, with cash and bank balances of Ksh 1,593.2 million and Ksh 60.0 million in longer-dated deposits.
The balance sheet also nudged ahead. Total equity increased to Ksh 5,568.0 million (2024: Ksh 5,333.3 million). Net current assets rose to Ksh 2,751.9 million from Ksh 2,443.5 million, while non-current liabilities edged down to Ksh 1,256.7 million. On these numbers, liquidity looks solid.
Audit overview: clean opinion, with the usual agriculture wrinkle
Deloitte & Touche LLP issued an unmodified opinion on the 2025 audited financial statements and confirmed these condensed numbers are consistent with the full accounts. The key audit matter highlighted relates to the measurement of biological assets – a common focus area in agriculture because valuations involve judgement and market assumptions.
Risks and watch-outs: avocado headwinds still in view
The company is frank that geopolitical tensions continue to impact avocado operations negatively. While some 2024 issues have been addressed, this external drag has not disappeared. Fair value gains were also materially lower year on year, reminding investors that accounting movements can cut both ways.
Currency noise eased – net exchange losses on cash were Ksh 1.5 million versus Ksh 166.9 million in 2024 – but exchange effects can swing with markets. The proposed 81% payout ratio amplifies income today but could be trimmed if trading conditions worsen.
Why this update matters for shareholders
- Return to profitability: From loss to Ksh 387.6 million profit, with EPS at Ksh 19.77.
- Operational improvement, not just valuation uplift: profits rose even as fair value
