Sasini Limited, a member of Sameer Group and one of the top tea and coffee producers in Kenya, has announced a final dividend of KES 0.25 per share. This makes the total they have paid for the year KES 0.75 after the payment of an interim dividend of KES 0.50 on 6^th July. Shareholders will earn less in this period compared to the same period last year. The announcement was issued following the directors’ meeting held yesterday, Monday 18^th December 2012.

What contributed to this loss?

The company shifted from making a profit-before-tax of KES 767.9 million to a loss of KES 30.3 million, a drop by 104%. Why could this have happened? Well, they have a couple of reasons that, they say, should explain this phenomenon. The price of coffee dropped significantly compared to last year resulting in decreased revenue. There were also increased costs of production especially those of energy, labour and farm inputs. The drought that occurred between January and March this year only added salt to their dyer situation. Tea production in the country was among the most affected and it effected a decreased input.

Despite the hardships, the Sasini Limited has managed to increase its turnover to KES 2.78 billion, upping the ante by 4%. The end product of the clash in earnings and losses will be a slightly lower return for investors.

The dividend due will be paid on or about March 15^th 2013, a few days after the country’s general elections. Only the members on the register as of the close of business on 21^st February 2013 will benefit as books closure will be made then. The company shall hold an AGM of the members at Kamundu Estate (Kiambu) the following day at 11:30 a.m. Shareholders can sip on some coffee from Savanna lounge as they wait for their returns. After all, unless you have more than 700 shares, your dividends won't buy you that coffee.