Management outlook dim
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Management Commentary
Tea profit levels are lower primarily driven by lower prices as a result of high production levels. This negative impact has been alleviated to some extent by improved early season hass avocado profit levels. The smallholder Fuerte season was reasonable though volumes were lower as compared to last year. Volumes of our own Hass avocado are expected to be much lower compared to last year and pricing levels are, as yet, not quantifiable.
As often repeated, in our business, predicting the future is difficult. We have a high interest rate economy with to date a relatively strong currency. Demand continues for our export crops but downward pricing pressure is unprecedented due to supply competition trends particularly in Europe. The company remains fully committed to its current development phase with strong cash reserves which your Directors believe are necessary to continue to realise the potential of Kakuzi Limited.
The Directors do not recommend the payment of an Interim Dividend.