Unga Group Plc, a Kenyan-based holding company with its investments in the business of flour milling and manufacturing of human nutrition products has issued a profit warning as profit for the six months ended 31 December 2018 fell 40% to Ksh306.3 million.
“Based on the company’s unaudited financial results for the first six months ended 31 December 2018 and the company’s second-half forecast, profit for the full year is likely to be at least 25% lower that prior year.
“Volumes and margins declined in the human nutrition business due to increased competition and depressed consumer demand,” company secretary W Jumba said in a statement announcing the half-year results.
The directors have also recommended that the firm should not issue an interim dividend.
In June 2018 as it released its audited financial results for the year ended 30 June 2018, it said “With the prevailing depressed demand and increased competition in the flour milling business, the 2018/19 FY is expected to be difficult and less profitable. Furthermore, any fiscal measures that will increase the cost of doing business will negatively impact performance. The Board will continue to apply strategies to ensure the best performance under the prevailing circumstances.”