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Unga Group Plc, a Kenya-based holding company involved with the manufacture and marketing of a broad range of human nutrition, animal nutrition, expects to post 25 percent lower net earnings for the 2019/20 financial year compared to the previous year.
“Based on the Company’s unaudited financial results for the first six months ended 31 December 2019 and the Company’s second-half forecast, profit for the full year is likely to be at least 25% lower than prior year.”
It’s annual report and financial statements for the year ended 30 June 2019, it said it was less favourable, with regard to human nutrition business.
“Stiff competition and aggressive pricing in the wheat segment, combined with depressed demand, led to a loss of volumes to existing and new market entrants.”
The group registered a profit of KSh151 million for the six months period ending December 31, 2019 down from KSh306 million in 2018.
The Group reported profit before tax KSh219 million, down from KSh437 million in 2018.
Revenue increased by 11 per cent, from KSh9 to KSh10 billion.
“The continued low consumer demand, coupled with excess production capacity, aggressive finished product pricing across the industry and restricted maize grain supply will remain a challenge.
The board and management will continue to work on strategies to deliver improved performance,” read the report.
Last year, the company issued a profit warning to shareholders and reported a loss for the FY18/19.
