Coffee firm Eaagads Ltd has recorded a significant turnaround for the period ending September 2025, posting a Sh4.392 million profit after tax, recovering from a Sh15.14 million loss in the same period last year.
The company’s earnings rebound was supported by stronger biological asset valuations and a notable reduction in production costs, according to results released on November 30, 2025.
The company’s fair value gain on biological assets rose sharply to Sh1.841 million, up from Sh0.511 million last year, representing a 260 per cent increase.
Management attributed the improvement to better crop conditions and enhanced farm performance during the period.
At the same time, cost of production fell to Sh64.81 million, a 36.4 per cent reduction from the previous year’s Sh101.9 million.
Despite these gains, Eaagads reported a drop in revenue, which fell 9.13 per cent to Sh94.77 million from Sh103.9 million in September 2024.
However, the decline in turnover was offset by the significant improvement in margins. As a result, gross profit rose sharply to Sh31.80 million, a dramatic increase from Sh2.49 million last year.
The company’s overall profitability was further reflected in its pre-tax results. Profit before tax stood at Sh8.231 million, marking a firm recovery from the Sh16.18 million loss previously reported.
Earnings per share also shifted to a positive Sh0.14, compared to a negative Sh0.47 in 2024.
Operationally, the company recorded improved output during the period. Coffee production rose 30 per cent to 175 tons, up from 134 tons last year, signalling a more robust performance on the farm. Out of this, the company managed to sell 100 tons during the period.
Despite the stronger production performance, the company has revised its full-year outlook.
Eaagads trimmed its 2025/26 production forecast to 270 tons following late flowering, which is expected to impact yields.
Management, however, said it remains optimistic that improved bean quality will support pricing in the coming months. The company also noted that early flowering for the 2026/27 crop indicates a recovery trajectory, suggesting improved yields in the next cycle.
The company’s balance sheet showed mixed movements. Current assets dipped slightly to Sh91.47 million from Sh93.80 million, while non-current assets declined to Sh1.506 billion from Sh1.676 billion.
Current liabilities recorded a substantial drop to Sh68.11 million, down from Sh93.50 million, while non-current liabilities fell to Sh232.1 million from Sh255.2 million. Total equity, however, eased to Sh1.298 billion, compared to Sh1.421 billion last year.
Cash and cash equivalents improved to Sh38.88 million, a 12.4 per cent increase from Sh34.59 million in the previous period, giving the company more operational flexibility heading into the final quarter of the year.
With stronger asset valuations, lower costs and improving crop performance, Eaagads enters the new production season on a firmer financial footing.
Management expects the combination of better bean quality and early flowering for the 2026/27 crop to support sustained recovery, even as the company adjusts its current-year production targets.
