JATU PLC (JATU.tz) 2021 Abridged Report
The Company is pleased to announce its results for the year 2021. The Company’s revenue increased by 478% with growth in maize flour, rice, beans, and sunflower oil, as a result of increased farmed acres, increased raw materials purchased, and forced sale of raw materials to avoid losses.
The growth in revenue was higher than that of the operating profit due to increased operating expenses such as advertising and IPO expenses. Staff costs increased by 174% following an increase in hiring and Administrative expenses by 159% to support the farming administration, production, and sales.
There is a notable and significant investment in new projects in which the company believes they give very profitable results in the near future.
The current assets increased by 619% due to significant receivables as a result of the sale of raw materials. Equity grew by 373% as a result of the IPO.
Investment in capital expenditure during the 2021 period increased by 34%. The net cash flows used by investments increased by 607%.
The Company reported cash generated from operations was TShs 1,433Mil TShs 4,204Mil generated from financing activities were used to finance the TShs 1,066Million capital expenditure and projects in progress TShs 4,612Mil.
I extend my sincere thanks to the JATU Board of Directors, management, and employees for their tireless and industrious efforts and continued support as well as our members and all stakeholders for their loyalty to our agribusiness support.
Our company is focused on the following plans:
a) On Dividend;
The company has generated a profit of TZS 305Mil and therefore, the directors will propose payment of dividend as per the company policy.
b) On Increase of Profitability;
To encourage new investors we need to increase profitability that will guarantee increasing shareholders’ dividends. To start with, in the forthcoming farming season, JATU PLC shall introduce a 25% share of profit on the member farmers’ produce sale profit and 20% on the livestock products sale profit.
c) On Marketing;
We are now focusing more on international markets. To start with, we have opened a subsidiary in Kenya i.e. JATU KENYA to serve the Nairobi market. Soybean farming at Sumbawanga is aimed at exploring China soybean market. We will also work on DR Congo which has recently joined the East African Community.
Peter Isare Gasaya
Chief Executive Officer
Date – 09/06/2022