>Williamson Tea and Kapchorua Tea report earnings
decline for FY14. Williamson Tea announced FY14
results for the year ended March 2014 with a 13.4%y/y
decline in EPS. The profits however included a 77.3%y/
y gain in changes in fair value of biological assets.
Profit from operating activities was down 31.1%y/y
which management attributed to weak markets and
declining tea prices within the year. The company
however opened up 1MW solar plant at their Changoi
Tea Farm in Bomet County which is set to reduce the
company’s production costs and reliance on Kenya
Power. The company declared a dividend of KES 7.00
down from KES 7.50 in 2013. Kapchorua Tea, an
associate of Williamson Tea, posted an 11.9%y/y
decline in turnover which lend to a 37%y/y decline in
profit arising from operating activities. The agricultural
firm attributed the weak results to the downward trend
experienced in tea prices. EPS fell 29.9%y/y to KES
32.21.The management stated that declining tea prices
and increase in costs of essential inputs will impact
profitability in the coming months. Kapchorua Tea
declared a dividend of KES 5.0.
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