Unga Group has reported a significant reduction in losses for the financial year ending June 2024, with the milling company’s net loss narrowing to KSh 669.6 million, down from the KSh 959.4 million posted in the previous year.
This improvement is largely attributed to lower finance costs and a narrowed operating loss.
The company, which is listed on the Nairobi Securities Exchange under the ticker symbol UNGA, saw a 28.7% decrease in finance costs, down to KSh 559.4 million, while operating losses shrank by 37.4% to KSh 275.6 million from KSh 440.6 million a year earlier.
Unga’s performance in the first half of the financial year was affected by heavy rains, which impacted maize grain quality and slowed production.
Despite this, the company made a strategic decision to reduce selling prices, reflecting lower raw material costs and passing the savings on to consumers.
As a result, volumes increased by 5%, driven by consistent product quality and improved customer experience.
“We focused on cost management and margin improvement in response to the high interest rates that persisted throughout the year,” Unga said in a statement.
Looking ahead, the company aims for a stable supply of raw materials and a stable Kenyan Shilling while remaining adaptable to global economic challenges such as interest rates and currency fluctuations.
UNGA’s stock closed at KSh 16.95 in the latest trading session, marking a year-to-date gain of 0.59%. The company did not declare a final dividend for the period.
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