SMALL BUT FRUITFUL KENYA ORCHARDS LTD

With a revenue of 64.5m Ksh in 2016 year, there is no contesting the fact that Kenya Orchards Ltd is a quoted small company but concede, it is a fruitful orchard.

In 2016 its core revenue grew by only 5.9% per cent to 64.6m Ksh but with no gains from share valuation unlike 2015 0.014m, total income actually fell by 14.1%.

But, the measure of its fruitfulness shines forth when the annual report for the same 2016 indicate 23.1% increase in profit before tax to 5.30m Ksh.

That means that, in spite of the drop in total income, Kenya Orchards harvested 8.2 Ksh from each 100 Ksh income compared to 5.76Ksh in 2015.

For good measure, this was achieved as finance cost almost tripled to 0.414m Ksh from 0.198m in 2015.

The secret, of course, was that direct cost of producing (growing?) the goods sold increased by only 4.43% to 56.6m Ksh leading to 17.7% jump in gross profit.

This was the foundation Kenya Orchards strengthened further by decreasing all overheads except finance cost.

Administration cost dropped by 8.74% to 1.88m Ksh; selling and administration expenses eased by 8.33% to 0.11m Ksh and other expenses ended 12.5% down at 0.077m Ksh.

Small but beautiful indeed and this showed too in its liquidity position by 2016 close as working capital came to 22.99m Ksh as against 17.68m by 2015 year end.

KENYA ORCHARDS LTD Kshm
                          2016.     2015
Total income  64.6.        75.2
Core revenue. 64.6.        61.0
Cost of sale.   56.6.        54.2
Gross profit.     7.98.      6.78
Administration 1.88.      2.06
Selling & Distr   0.11.     0.12
Other cost        0.077   0.088
Finance cost   0.415.  0.198
Profit b4 tax.      5.30.    4.33
Margin %            ,8.20.   5.76
Working capital 22.99 17.68

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