Unga Group Plc has recorded Ksh.293.4 million net profit for the year ended June 30, 2021, compared to Ksh.66.1 million that was recorded same period last year.
This represents a 343 percent jump in profitability owing to reduced margins, re-organisation and finance costs.
The animal nutrition business broadened its portfolio further with the introduction of K9 Dog Food.
“Opportunities in new product lines continued to be explored; necessary investments are being made to bring these on-going initiatives to fruition,” said Unga in a statement.
Compared to prior year, interest expense reduced because of re-structuring of banking facilities.
International wheat prices increased by at least 30 percent during the year due to poor harvest and adverse fiscal measures imposed by some of the leading exporting economies.
“Other basic raw material prices were relatively high in the period; however, with the onset of the local maize harvest, maize prices remained stable from the second quarter to the end of the financial year,” said Unga in a statement.
Depreciation of the Kenya Shilling against the US Dollar also impacted importation costs and led to substantial forex losses.
Credit risk remained high, but the Group made every effort to accommodate its customers to ensure product availability.
The Company received payment for grain supplied in support of the government-led maize subsidy program in 2017.
According to Unga, the interest element of the debt remains outstanding with the long outstanding tax refunds having been received during the year ending a protracted litigation process.
