Kapchorua’s shares rise to 52-week high
By John Otini, June 30, 2023
Kapchorua Tea has announced its recommendation for a first and final dividend of Sh25 per share for the year ended March 2023 sending its share price to a 52-week high of Sh173 a share.
“Kapchorua Tea Kenya Plc set a new 52-week high during today’s trading session when it reached 173.00. Over this period, the share price is up 61.68 per cent,” the Financial Times data team said.
The development comes as the company reported impressive financial results, with a significant increase in profits compared to the previous year.
The company’s profit for the year reached an impressive Sh320 million, a substantial rise from Sh215.7 million recorded during the same period in 2022.
This remarkable growth can be attributed to various factors, including favourable exchange rate, good weather and increased production, and efficient cost management.
Kapchorua Tea’s strong financial performance underscores the resilience of the tea industry, despite challenges such as fluctuations in global tea prices and changing consumer preferences.
The company’s ability to navigate these obstacles and deliver robust profits reflects its strategic focus on quality tea production and effective supply chain management.
The recommended dividend of Sh25 per share demonstrates Kapchorua Tea’s commitment to creating value for its shareholders. “The dividend payout serves as a reward for their continued support and investment in the company,” the company said.
Shareholders can anticipate a healthy return on their investment, reflecting the positive outlook and confidence in the company’s future prospects.
Furthermore, Kapchorua Tea’s financial success has broader implications for the tea industry in Kenya. As a prominent player in the sector, the company’s positive performance highlights the potential for growth and profitability in the industry, providing inspiration for others to strive for excellence.