This archive report was first published on 27 September 2019.
Unga Group Limited released its audited financial results for the year ended 30th June 2019, showing a revenue of Ksh 17.9 billion, a 10.4% decrease from the previous year's Ksh 19.98 billion.
Published on September 27, 2019, the results also revealed a significant increase in finance costs, rising by 83.7% to Ksh 166.75 million.
The company's profit for the year decreased by 30% to Ksh 544.81 million, mainly attributed to increased competition in the human nutrition business. The animal nutrition business absorbed increased raw material costs, constraining margins while supporting volume.
The Earnings Per Share (EPS) decreased by 32.7% to Ksh 4.52 from Ksh 6.72, due to the decrease in profit.
Unga Group also announced the successful operation of its new wheat mill in Eldoret, which increased capacity and improved production efficiencies. However, the bakery business recorded a 16% reduction in revenues, attributed to credit risk challenges in the retail sector.
The company's board recommended a final dividend of Ksh 0.50 per share to be paid on or about January 15, 2020, to shareholders registered in the company's books by December 5, 2019.
