Willamson, Kapchorua Tea post losses, cite tough half year
RICHARD MUNGAI/ Agricultural affiliates Willamson Tea and Kapchorua Tea waded into the loss territory in the first half of this year amid increased production costs and low tea prices.
Willamson Tea reported a Sh263.11 million net loss for the six months ended September 30, which was a 169.1 per cent drop compared to a profit of Sh380.66 million recorded in a similar period last year.
On the other hand, Kapchorua Tea posted a half year net loss of Sh89.68 million, from a profit of Sh100.41 million in 2015.
The companies, which share directors, said tea prices have remained depressed due to higher crops yield in tea growing areas during the period.
“Unless there is a readjustment on the supply side, demand will remain weak, with buyers under no pressure to pay more for their teas,” the companies said in a statement l released last Friday.
A cup of black tea