Sisal firm REA Vipingo cuts 2014 profit outlook
05 November 2014, 14:42
Nairobi - Kenyan agricultural firm REA Vipingo warned on Wednesday that its profit in 2014 could fall by at least 25 percent from last year's level.
The producer of sisal, a source of fibre used to make rope, twine and other products, said the decline in profits was partly due to an expected fall in the value of its biological assets - the plants on its plantations.
The firm, which has vast sisal estates in both Kenya and Tanzania, posted pretax profit of 648 million shillings ($7.23 million) in its last financial year ended September 2013.
It said in a statement it would have to substantially lower the value of its biological assets in its year to end-September. In 2013 a re-adjustment of those assets resulted in a net gain of 228 million shillings.
Its shares have not traded on the bourse since Nov 2013 when its majority shareholder, REA Trading, made an offer to buy out the company.
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