Annual Financial Report

KAKUZI PLC

ANNOUNCEMENT OF GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017

Condensed consolidated statement of profit or loss and other comprehensive income

31 December 2017

31 December 2016

Shs'000

Shs'000

Sales

2,823,926

2,651,199

Profit before fair value gain in non-current biological assets and income tax

766,324

690,543

Fair value gain in non-current biological assets

82,799

67,236

Profit before income tax

849,123

757,779

Income tax expense

(257,480

)

(195,354

)

Profit for the year

591,643

562,425

Other comprehensive income:

Items that are not reclassified to profit or loss:

Remeasurement of post employment benefit obligations (net of tax)

1,735

5,936

Total comprehensive income

593,378

568,361

Earnings per share (Shs):

Basic and diluted earnings per ordinary share

30.19

28.70

Condensed Consolidated Statement of Financial Position

31 December 2017

31 December 2016

Shs'000

Shs'000

EQUITY

Share capital

98,000

98,000

Other reserves

16,607

14,872

Retained earnings

4,070,229

3,615,786

Proposed dividends

137,200

117,600

Total equity

4,322,036

3,846,258

Non-current liabilities

807,190

801,418

5,129,226

4,647,676

REPRESENTED BY

Non-current assets

3,338,922

3,015,067

Current assets

758,455

618,771

Cash and bank balances

1,648,749

1,430,576

Current liabilities

(616,900)

(416,738)

Net current assets

1,790,304

1,632,609

5,129,226

4,647,676

OVERVIEW:

The above is an extract from the financial statements which have been prepared in accordance with the International Financial Reporting Standards (IFRS) and audited by Deloitte & Touche, Certified Public Accountants of Kenya, and on which an unqualified opinion has been issued.

A commendable set of results for 2017 showing a pre-tax profit of Shs 849 million against Shs 758 million of last year. The earnings per ordinary share increased from Shs 28.70 in 2016 to Shs 30.19 in 2017. The increase in profit is as a result of continued market demand for Avocado and Macadamia throughout the year. Profitability within the Tea operations continued to reflect the difficult trading conditions and significant inflationary pressure on labour and other production costs.

DIVIDEND:

The Directors recommend the payment of a first and final dividend for the financial year 2017 of Shs 7.00 per ordinary share (2016: Shs 6.00) subject to shareholders' approval. The dividend shall be paid on or about 30 June 2018 to the shareholders on the members' register at the close of business on Thursday, 31 May 2018.

ANNUAL GENERAL MEETING:

The Annual General Meeting of the Company will be held on Tuesday 15 May 2018 at 12.00 Noon at Nairobi Serena Hotel.

BY ORDER OF THE BOARD

G H Mclean

Chairman

22 March 2018