Sasini Plc is the latest listed company on the Nairobi Stock Exchange, NSE, to issue a profit warning. In a statement, Sasini announced a profit warning for the fiscal year that ended in September 2023, projecting net earnings to be 25% lower than 2022.
In an announcement signed by the group’s board chairman, Dr James Boyd McFie, the company clarified that it was forewarning investors and other interested parties on the dwindling profits of the company.
“Pursuant to the provisions of Paragraph G.05 (1) (f) and (2) of the Fifth Schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002, Sasini PLC makes this profit warning announcement for the benefit of our investors and the general public,” the profit warning read.
Furthermore, the announcement cited the challenges that had pushed the company’s profits into a freefall.
“The major challenges during the year were occasioned by the very high cost of production due to unplanned escalation of input costs, the severe drought witnessed in the first six months of the financial year which affected production volumes negatively, lower than expected coffee prices, and the effects of the severe recession in the world commodity. markets escalated by geopolitical events and factors that affected our macadamia business,” the announcement clarified.
Previous challenges experienced by Sasini Plc
Notably, the company has previously cited similar reasons for increased losses.
In the financial statements released by Sasini Group for the year ended on 30th September 2019, severe weather conditions and high input costs were cited as major affects to the company’s financial position
“The expectation for the year’s performance was severely affected by the collapse of the tea and coffee prices experienced during the year. This was further compounded by severe weather conditions, low prices realization, high cost of production manifested in labor and input costs and lower productions volumes especially in tea,” the annual report stated.
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Sasini Group Plc. is listed in the Nairobi Securities Exchange (NSE) under the ticker symbol, SASN.
Consequently, in the latest NSE numbers, the company traded at Ksh 19.80 on Tuesday, November 7.
Additionally, according to the company, Sasini Plc has over 6,000 shareholders, majority of whom are Kenyans.
Notably, Sasini Plc is a member of the Sameer Group.
Sameer Group is also listed on the NSE under the ticker symbol, SMER. By the end of the trading week, Sasini Group was a gainer at the NSE registering a rise in stock prices of 8.92 percent.
This was after closing the trading week with its shares priced at Kshs.2.32.
Other companies have issued profit warnings.
In recent times, many Kenyan companies have issued profit warnings.
In the listed reasons for the increased warnings, the companies have cited the current turbulent economic times, the ended Covid-19 pandemic, the depreciating shilling, and the rising inflation rates in the country.
Some of the companies that issued profit warnings include the Nation Media Group, Car and General and Kenya Power and Lighting Company (KPLC).
Also Read: Top Kenyan Companies That Have Warned Investors So far and Why
The Capital Markets Authority (CMA) requires that companies in Kenya inform shareholders, investors, and other interested parties on the state of their financial situation, especially if it directly affects the shareholders and investors.
