Nairobi Securities Exchange-listed firm, Kakuzi has positioned itself as an “integrated international markets focused agribusiness enterprise” to enhance its returns on investment score and sustain its market positioning.
Speaking at the firm’s 96th Annual General Meeting (AGM) on Tuesday, May 14, Kakuzi’s board chair, Nicholas Ng’ang’a, said the company, which has the vision to be “Africa’s leading superfoods producer and exporter”, will maintain a heavy focus on sustainable crop and animal production to boost shareholder returns.
During the AGM, the company’s shareholders approved a first and final dividend payout of Sh 24.00 per ordinary share for the Financial Year ended December 31, 2023. It will also explore non-agricultural revenue streams which are in line with our long-term strategies.
Ongoing diversification plans, Ng’ang’a said, are also in high gear to reduce the firm’s reliance on two key crops (macadamia and avocado), with the Blueberry pilot project showing positive results. The diversification strategy also features a market expansion programme with enhanced domestic sales and exports to emerging markets such as India and China beyond the current European mainstay.
“We are not just a farm, we are now an integrated, sophisticated agribusiness enterprise with a capacity to be a leading player in the international markets,” Mr Ng’ang’a said. “We must continue to make good decisions to sustain growth with diversification of crops, developing our markets, both domestically and internationally, and our value-added range being vital pillars of our plans. Still, we must ensure we do this responsibly and responsively to climate action needs.”
Mr Ng’ang’a added that the company has maintained an enviable track record on dividend payments over the last 5 years. He said: “Our planning is and must remain for long term value rather than short term returns”.
As part of a strategic growth plan, Kakuzi’s managing director Mr Chris Flowers confirmed plans to at least double avocado production and exports from 3 million four-kilo equivalent cartons to 5 million over the next ten years.
“This will be achieved by a combination of young orchards coming online and completing the plantings next year, as we also seek to mitigate market and shipping risks by using different varieties that mature during different periods of the year,” Mr Flowers said.
He added that Macadamia production will also be ramped up from 900 tons of kernel to 1,500 tons over the next ten years.
To facilitate sustainable production, Kakuzi, Flowers said, is banking on strategic water harvesting and irrigation to improve yields while introducing new macadamia varieties from Hawaii and maybe, in time, the latest Australian varieties.
The firm recorded a pre-tax profit of Sh 664 million, which was impacted by a Sh 354 million pre-tax loss from its macadamia operations. Its avocado “divisional operations” recorded a pre-tax profit of Sh 1.4 billion, up from Sh 0.8 billion posted the previous year.
In environmental stewardship, the company is working closely with government and commercial sector players to expand the use of integrated pest management and technology in agriculture to minimise the use of chemicals.
On Agricultural Technology (AgTech) ventures, Mr Flowers singled out investments in Artificial Intelligence systems for crop husbandry and management.
“We are clear that artificial intelligence (AI) will undoubtedly have a role to play in our operations, and we plan to invest in AI-linked Ag-tech solutions as part of our commitment to increasing our operating efficiencies,” Flowers said.
