What investors can learn from Williamson Tea financial results
Williamson Tea has released its financial results for the six months through September 2020. The results show a remarkable improvement from last year despite the tea producer operating in a challenging environment.
Williamson Tea is involved in the business of growing and processing tea. The company sells its products in domestic and international markets. Williamson is a large shareholder in fellow tea producer Kapchorua Tea.
Williamson Tea financial results show a resilient business in a pandemic
Williamson Tea financial results show the company made a profit of Ksh34 million in the six months through September 2020, reversing a loss of Ksh66 million in a similar period last year. Revenue jumped to Ksh1.9 billion from Ksh1.3 billion.
The results improved from last year even as Williamson battles Covid-19 pandemic headwinds and weak tea prices. Despite the impressive financial results, Williamson wants investors to know that it continues to face challenging market conditions that may weigh on its future results.
Are Williamson Tea shares a good investment?
If you are shopping for the best companies to invest in Kenya, you may want to know if Williamson is a good investment. Williamson shares may appeal to investors seeking dividend income. The company has a long dividend history and stands out among the most reliable dividend stocks in the country.
Williamson is building a massive solar farm to produce its own electricity. It counts on the solar farm project to cut its electricity bill by almost one-third. The savings on electricity costs should improve Williamson’s profitability and make the company’s dividend more stable.
How to buy Williamson Tea shares
Williamson Tea shares trade on the Nairobi Securities Exchange under “WTK” ticker symbol. The shares closed at Ksh128.50 on Tuesday. To be able to buy Williamson shares, you will need to have a CDS account.
You can open a CDS account through a stockbroker or an investment bank. Once you open the account, you will decide the number of Williamson Tea shares you want to buy and place your order.
Make sure to provide the broker with the money to purchase the shares for you. Keep in mind that the minimum number of Williamson shares you can buy every time you place an order is 100 units.