Kakuzi PLC’s half-year profit collapsed 97.6% to KSh 7.11 Mn, leaving the agricultural producer with one of its weakest first-half earnings performances in more than two decades as its two main export businesses deteriorated simultaneously.

Sales fell 26% to KSh 1.12 Bn, avocado profit nearly halved and macadamia profit sank 79%, overwhelming stronger results from forestry and blueberries.
Gross profit dropped 82.5% to KSh 114.48 Mn, while Kakuzi swung to an operating loss of KSh 26.55 Mn from a 396.85 Mn profit a year earlier.
Profit before tax fell to KSh 10.42 Mn from KSh 435.25 Mn, while earnings per share dropped to KSh 0.36 from KSh 15.08.

The result marks a sharp reversal from Kakuzi’s recent earnings cycle-Half-year profit after tax stood at KSh 341.27 Mn in 2022, KSh 117.50 Mn in 2023, KSh 347.51 Mn in 2024 and KSh 295.54 Mn in 2025.

Sales, however, remain above most of Kakuzi’s historical first-half levels, pointing to deteriorating crop economics rather than simply a loss of revenue scale.

Avocado segment profit fell 45.3% to KSh 215.91 Mn as lower crop volumes coincided with difficult export conditions. Kakuzi said Kenyan avocado supply to Europe was running 42% below 2025 and 62% below two years ago, while overall European supply was about 10% higher. Middle East tensions have also forced shipping around the Cape of Good Hope, extending transit times and putting fruit quality and selling prices under pressure.

Macadamia profit dropped 78.6% to KSh 68.16 Mn despite saleable kernel production increasing to 428 tonnes from 413 tonnes. Volumes sold declined to 212 tonnes from 252 tonnes, while the average net selling price fell 16% to US$9.72/kg, reflecting increased global supply and weaker demand.

Diversification provided some relief. Forestry profit rose 70.9% to KSh 73.33 Mn, blueberry profit increased to KSh 15.10 Mn, tea losses narrowed and livestock and arable operations reached break-even. Kakuzi is expanding its blueberry operation and exploring China, India and longer-life avocado markets.

Cash generation weakened more sharply than earnings. Net operating cash flow swung to a KSh 739.67 Mn outflow from an KSh 11.87 Mn inflow, while cash fell to KSh 274.59 Mn. Kakuzi nevertheless increased property, plant and equipment spending more than fourfold to KSh 240.13 Mn.

The company has issued a profit warning, expecting FY2026 net earnings to be at least 25% below FY2025, and recommended no interim dividend. The warning leaves Kakuzi increasingly dependent on a recovery in avocado volumes and macadamia pricing while its newer businesses scale up.

Kakuzi Half Year Profit Plunges 98% as Avocado, Macadamia Earnings Collapse