Thursday, December 15, 2005
Sister companies, Kaphcorua Tea and Williamson Tea, both reported losses for the six months ending in September 2005. Turnover was down by 8% to 206m at Kapchorua and by 13% to 526 million at Williamson and operational loss at both companies was 4m and 7m respectively. The loss before tax was 28m at Kapchorua and 53m at Williamson for the six months. The companies attributed the losses to oversupply of tea in the international markets and reduced margins caused by a strong shilling, with a warning that losses will continue until the shilling weakens. This follows a bad year for Sasini Tea as well.