Unga Group narrowed its losses to KSh669.6 million in the full year ended June 2024 from KSh959.4 million posted previously on reduced costs.
- •Owing to a stronger shilling in the first half of 2024, the manufacturing firm had its finance costs reduced decently coupled with a narrow operating loss.
- •Unga, which is listed at the Nairobi Securities Exchange under the ticker symbol UNGA, did not declare a final dividend.
Finance costs edged lower by 28.7% to KSh 559.4 million with operating losses decreasing 37.4% to KSh275.6 million from KSh440.6 million recorded a year prior.
The first half of the financial year was marked by heavy rains possibly impacting the quality of maize grain which slowed down the progress.
Gross revenue saw a marginal decline as a primary effect of selling prices adjusted downwards owing to a reduction in raw material costs.
“We made a strategic decision to lower selling prices in response to reduced raw material costs, thus allowing us to pass the savings to our consumers,” noted Unga.
However, volumes increased by 5% which the milling company attributes to consistency in product quality coupled with enhanced customer experience.
“In response to the high interest rates that persisted throughout the year, we focused on cost management and margin improvement.”
UNGA closed the previous trading session at KSh16.95 taking the year-to-date gain to 0.59%.
Going forward, the listed miller said it looks at a stable supply of raw materials and a stable currency while adapting to global inconsistencies.
“A stable supply of raw materials and a stable Kenyan Shilling will be crucial in the coming financial year. We will remain vigilant and adaptable to global economic volatility, including interest rates, credit, and currency risks.”