PERFORMANCE

During the year under review, the company made an after tax profit of Shs.18.1 million compared to a profit of Shs.0.5 million in the previous financial year. The improvement in revenue was mainly attributable to improved coffee prices despite a drop in coffee tons sold in the year. The average price realized during the year increased to USD 4.218 per kilogram compared to USD 3.863 per kilogram in 2015/2016.
Production volumes however increased from 326 tons in 2016 to 424 tons in the current financial year, of which 315 tons had been sold prior to 31 March 2107 ( 2016: 318.9 tons).
Coffee volumes taken to the coffee auction house were affected by the slow drying of coffee due to the weather conditions, hence at the year end, the company remained with high levels of coffee inventories.

The cost of production dropped by Shs. 21.9 million whilst administrative costs increased by approximately Shs. 10.3 million. The increase in administrative expenses was due to an increase in the depreciation charge for the year, following a revaluation of the company's property, plant and equipment towards the end of 2016.
The decrease in costs of sales was as a result of enhanced cost efficiencies achieved in the farm. The other comprehensive income reflects the after tax revaluation surplus of the company's freehold land, measuring 44 hectares. The remaining land measuring 341 hectares is leasehold land and therefore not subjected to a valuation.