Sasini has issued a profit warning for the full year ending 30th September, 2024, citing higher production costs, depressed commodity prices, and supply chain disruptions.
The company anticipates a 25% decline in net profits for the year to 30th September compared to a similar period last year.
Sasini further attributes the anticipated decline to challenges with the nature of the fruit business stemming from disrupted logistics into European Markets after the closure of the Suez Canal. Similarly, the perceived severe recession in major economies, especially in the United States, has lowered demand for the nuts business.
In the half-year financial results, Sasini registered a net loss of Ksh. 37.7 million on account of a 54% surge in the cost of sales. Since 2020, the company has significantly reduced its workforce, citing increased mechanization and a high payroll.
According to Sasini, legislative changes in the coffee sector have resulted in adverse supply chain disruptions, summing up the anticipated decline. The company, which trades under the ticker symbol SASN at the NSE, closed the previous trading session at Ksh. 17.85, a year-on-year loss of 10.8%.
“Based on our forecast of the financial results and taking into consideration the information currently at the Board’s disposal, we anticipate that our projected net earnings for the year to 30th September 2024 will be 25% lower than the reported earnings for the year ended 30th September 2023. The business performance for the period has been adversely affected by several extenuating circumstances in the global macro environment; the global economic situation and continuing geo political disruptions in our business value chain being the key factors,” stated Board Chairman James Boyd McFie in the public notice.