OUTLOOK
Following the change in the management of Eaagads to Coffee Management Services in June 2017, significant changes have been made in the practices and procedures utilised on the estate. The company's coffee bushes are in good shape to produce an
improved crop in the latter half of the financial year.

EAAGADS LIMITED
PROFIT WARNING ANNOUNCEMENT
This announcement is made pursuant to the Capital Markets Act, Chapter 485a, of the Laws of Kenya and the
Capital Markets (Securities ) (Public Offers , Listing and Disclosures ) Regulations , 2002.
Eaagads Limited (the “Company”) hereby announces that the earnings for the current financial year will be lower by at
least 25% from the earnings reported for the same period in 2017. This announcement is based on the unaudited
financial statements of the Company for the year ended 31 March 2018.
Profit warning
During the financial year, the Company incurred an after tax loss of KShs. 46.7 million compared to a profit of KShs.
18.1 million in the same period last year. The main contributor to the reduction in the profits in the year, was due to
lower coffee volumes offered to the auction owing to lower production levels and lower quality beans which affected
the prices achieved. This was solely attributable to the severe drought experienced in Kenya in late 2016/early 2017.
In addition, coffee prices were affected by the New York Coffee Exchange market price, which principally determines
the price of coffee. More than 76% of Eaagads coffee was sold through the auction during the financial year. The
combination of these factors caused a dip in the sales revenues alone of KShs. 56.5 million. The loss position was also
further exacerbated by an increase in coffee production costs, notably due to increased labour costs, which went up
by 29% as well as other upkeep costs, which went up by KShs. 45.5 million, this amid cost savings in the
administration costs which dropped by KShs. 12.2 million.

By order of the Board
Company Secretary
Eaagads Limited