Camellia shares slide after profit warning from Kenyan business Kakuzi

Camellia PLC on Wednesday flagged a profit warning from its subsidiary Kakuzi PLC, which cited disruptions to global shipping routes for a first-half profit downturn.

Shares in Camellia, a holding company for agriculture businesses, closed 4.9% lower at 5,610.00 pence each on Wednesday in London.

Camellia owns 50.7% of Kakuzi, a Nairobi-based plantation operator, which warned that net earnings in 2026 may be at least 25% lower on-year.

It cited "exceptionally dry conditions on the farm at the end of 2025 and the Middle East conflict along with a softening of the international macadamia market" for the downturn. The company explained that the full-year outcome was difficult to predict, on account of seasonality and uncertainty related to crop yields and pricing.

"Our strategic priorities remain unchanged in substance, even as the operating conditions in which we pursue them continue to shift," Kakuzi said on Wednesday.

"This downgrade in Kakuzi's profit forecast is coupled with the events in the Gulf, which have created headwinds in several of the operating companies' expected trading profits for the full year," the company added.

Kakuzi reported sales of KSH1.12 billion, or £6.4 million, for the six months ended June 30, down from KSH1.51 billion the year prior. Pretax profit plummeted to KSH10.4 million from KSH435.2 million, with earnings per share down to KSH0.36 from KSH15.08. The company set no dividend.

It noted price pressure due to an increased global supply of avocados, as well as macadamia nuts, while the blueberry business showed signs of growth, despite "freight complexity caused by conflict in the Middle East. The tea and livestock segments met expectations and continue to perform in line with our expectations, with a slight strengthening of the tea market.

Camellia is due to publish first-half results on September 3.

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