Williamson Tea has announced that it will pay a dividend to its shareholders, even after posting a net loss of KSh146 million for the period that ended on 31st March 2021. The company plans to pay an interim and final dividend of KSh10 per ordinary share, which will amount to KSh175.1 million in total dividend payout.
According to the tea company, an oversupply of tea, low demand, global economic downturn, concerns over the pandemic, and currency fluctuations are some of the factors that led to the firm’s huge loss. Williamson Tea also blamed the newly ratified Tea Act, 2020 for its poor financial performance. In March 2020, Williamson tea reported a net profit of KSh137 million.
The firm’s operating revenue rose by 23% to KSh3.73 billion on 31st March 2021 from KSh3.03 billion reported on 31st March 2020. However, Williamson Tea’s loss from operations climbed to KSh163.2 million in the period under review, from KSh20.7 million in March 2020.
According to its financial statement, the company suffered a KSh13.8 million loss from discontinued operations in the last financial year.
The firm’s total assets grew by 2% to KSh8.05 billion on 31st March this year from KSh7.9 billion a year ago. Similarly, its total liabilities increased to KSh2.08 billion from KSh1.8 billion the year before.
Williamson Tea is one of seven agricultural companies listed on the Nairobi Securities exchange. The entity is among the oldest tea companies in Kenya, having been in business for more than 150 years.