Kenyan avocado producer Kakuzi Ltd has recorded an 8.4 per cent drop in profit for the 2010 calendar year, according to FreshFruitPortal.com.
The company announced a net profit after tax of Ks311m (US$3.69m), attributing the decline to a lower avocado crop, in addition to a continuing dispute with Del Monte Kenya.
“Net returns on the avocado crop, in particular the Fuerte variety, were lower than the previous year,' the company announced to the Nairobi Stock Exchange.
The company also gave details of its dispute with Del Monte Kenya over a financial payment.
“The company has received a claim for an alleged overpayment of Ks109m (US$1.29m) from Del Monte Kenya Ltd (DMKL) following the discovery of an alleged error made by DMKL in calculating the sale price of pineapples for the joint venture for the years 2007 and 2008,' it said. “Although the matter is still to be concluded, the directors consider it prudent to make a provision for this claim as an adjustment to prior years' financial statements.'
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