This archive report was first published on 29 July 2019.
On July 29, 2019, it was reported that listed coffee producer Eaagads #ticker:EGAD had returned to profitability in the year ended March 2019.
The firm's net profit stood at Sh2.65 million in the period, a significant improvement from the net loss of Sh62.5 million recorded in the year ending March 2018.
Revenue climbed by 114.6 percent from Sh83.7 million to Sh179.6 million, driven by higher export prices for coffee and favourable weather conditions.
The firm produced 419 tonnes of coffee last year, up from 154 tonnes in the 2017/18 season when drought hit the agriculture sector.
According to Eaagads, the increase in production was mainly attributed to good agronomical practices and favourable weather conditions.
The average price realised during the year increased to $3.37 (Sh350) per kilogramme from $3.32 (Sh345) in the prior year.
As a result of the larger crop, the cost of production rose by Sh23.5 million to Sh136.3 million, with picking and wet processing costs going up by Sh28 million.
Crop commission charges increased by Sh8.6 million, mainly due to a crop sale commission of 2.75 percent levied on the timing of crop sales.
