This archive report was first published on 18 December 2019.
On December 18, 2019, Sasini, a Nairobi Securities Exchange-listed agricultural firm, revealed a net loss of Sh337.7 million in the year ended September, a significant downturn from the Sh293.5 million net profit recorded the previous year.
The company attributed the loss to lower sales, which declined by 20 percent to Sh2.7 billion in the review period compared to Sh3.5 billion a year earlier. Sasini's cost of sales also dropped 11 percent to Sh2.4 billion, but the reduction in costs was insufficient to compensate for the lower turnover.
The sales decline was primarily due to lower prices of tea and coffee, which have been on a downward trend in the last year, attributed to a glut in the market.
As a result, Sasini suspended its custom of making a second payout to shareholders, citing that the directors did not recommend the payment of a final dividend.
The company's cash and bank balances dropped to Sh429.2 million from Sh1.1 billion, and its decision to suspend dividends is seen as a move to conserve cash amid the challenging business environment.
