Williamson Tea Kenya (NSE: WTK) has reported a significant earnings downturn, driven by weaker global tea prices and a strong Kenyan shilling that has eroded export margins. Despite maintaining a healthy balance sheet with low debt and substantial cash reserves, the company posted a net loss of KES 153 million for FY 2025, a stark reversal from the prior year’s profit. Gross margins collapsed to just 2.8%, highlighting the operational pressures in a saturated and price-pressured global market. With dividend payouts slashed by 60% and profitability at risk, WTK remains a fundamentally sound but cyclically challenged stock.

(Last Price 221): Lacking any evidence of a turn higher, such as a five-wave advance, there is scope for lower in wave (iv) towards 200 – 215, the 38.2% retracement levels of wave 3. Trading above wave D extreme at 250, will suggest the trend has turned higher.