Unga Group has issued a profit warning for the full year profits for the year ending on 30th June 2020. Based on the half year results and the second half projections, the company expects its net earnings to drop by more than 25 percent in comparison to 2019 full year earnings.
The food processing company blames low sales volumes in the animal nutrition segment, and increased prices of maize and wheat for the decline in profitabilty. Increased imports of poultry and dairy products from the regional markets negatively affected local farmers productivity and therefore led to a drop in demand for Unga group’s animal feeds.
The company posted a 30% dip in net profit in the last financial year.
Unga group anticipates that the low demand for their products and limited maize grain supply will continue to challenge the firm’s revenues. The company’s board of directors and management team have pledged to create strategies that will improve financial performance in future.
Related: Unga Group Issues Profit Warning as Half Year Profit Drops 40%
