This archive report was first published on 28 November 2019.
On November 28, 2019, Williamson Tea Kenya and its associate Kapchorua Tea Kenya announced a significant reduction in their half-year losses.
According to the companies' financial reports, Williamson Tea Kenya's net loss for the period stood at Sh65.8 million, a 22.5 percent decrease from Sh85 million in the previous year.
The company's sales declined by a third to Sh1.3 billion from Sh1.9 billion, indicating that lower costs helped to reduce the loss.
Kapchorua Tea Kenya, on the other hand, slashed its net loss by 80.2 percent to Sh15 million from Sh76.4 million.
Both companies, which are controlled by London-based institutional investor Ngong Tea Holdings, reported lower tea production and prices due to rival producers bringing their surplus stocks to the market.
As a result, the companies issued pessimistic forecasts for the full year ending March 2020, stating that it was unlikely they would make up their crop deficits or see a rise in prices.
Despite their losses, both companies have been paying dividends, tapping their retained earnings to make the distributions.
