Unga Group’s Net Earnings Decline 88% to KSh 66.2 Million on Low Consumer Demand

Unga Group’s Net Earnings Decline 88% to KSh 66.2 Million on Low Consumer Demand

Unga Group Issues Profit Warning on Increased Competition and Depressed Demand

Unga Group Plc, a Kenya-based holding company involved with the manufacture and marketing of a broad range of human nutrition, animal nutrition, on Friday said its profit declined 88% to Ksh 66.2 million from Ksh.544.8 million for the year ending June 30, 2020.

The firm attributed the decline to a fall in consumer demand, raw materials supply disruptions, a weakening Kenya Shilling as well as reduced travel and hotel business.

According to the financial results, its revenues increased by 2% from KSh 17.9 Billion to KSh 18.3 Billion. Cash generated from operations declined from KSh 1.4 Billion to KSh 868.9 Million.

The miller’s balance sheet grew to KSh 12.1 Billion from KSh 10.6 Billion posted the previous year with its profitability, measured by the Earnings per Share(EPS) falling to 43 cents from KSh 4.52.

“At Ksh.18.2 billion, group revenue was up from the prior year. However, volumes declined by four percent due to low consumer demand and aggressive pricing of finished products by competitors,” Unga Limited added.

“In the current tough economic environment, the recovery of our business is largely dependant on healthy cash flows. There is a need to preserve cash and we, therefore, do not recommend the payment of any dividend,” said W. Jumba, Unga Group Plc Company Secretary.

READ