Williamson Tea lines up Ksh344 million dividend on return to profit
Williamson Tea Kenya PLC (WTK) is a farming company engaged in the production and sale of tea. It grows the tea in Kenya for sale around the world. The company made a profit of Ksh137.2 million in its 2020 financial year ended March, reversing a loss of Ksh172.4 million in the previous year.
Notably, Williamson Tea Kenya returned to profit in fiscal 2020 despite revenue dropping to Ksh3.1 billion from Ksh3.4 billion thanks to better cost controls. The revenue dropped on weak tea prices, a problem the management predicts will persist.
The tea company plans to pay a dividend of Ksh20 per share, totalling Ksh344.4 million. The company paid the same Ksh20 per share dividend last year despite the loss.
Williamson Tea Kenya shares retreated 1.36% on Wednesday (July 22) to close at Ksh145.50. The shares have climbed 4.3% this year but still trade at 12% discount to their 52-week peak of Ksh165.