Drought dampens Finlays Kenyan tea business
JAMES Finlays plantations suffered a 48% drop in interim profits because of acute shortages in the Kenyan tea crop. Severe drought caused the shoftfall.
Pre-tax profits dropped to £2.57 million on a 7.6% decline in turnover, to £79.7m for the six months to the end of June.
The drought will mean higher tea prices in the final half, which will work in the groups favour.
Current Kenyan tea prices are 60p higher per kg at £1.40. Rising affluence in emerging markets is increasing demand for black tea.
The total Kenyan crop is expected to be about 50m kg less than last year.