Unga Limited Group Plc, the only listed miller at the Nairobi Securities Exchange (NSE) has sunk deeper into loss territory, with a net loss of Ksh 669.58 million for the full year ending 30th June 2024.
The giant miller attributed the loss to the economic landscape which remains crumpling, with challenges such as evolving domestic monetary policies and exchange rate fluctuations.
In the last financial year ended June 2023, the firm recorded a Ksh959.38 million net loss while in the preceding similar period, it had a loss of Ksh311.36 million.
Losses were attributable to the owners of the parent which also reduced to Ksh 449,552 from Ksh 636,517, and the non-controlling interest portion of the loss fell to Ksh 220,020 from Ksh 322,864.
At the same time, the miller saw its revenue drop to Ksh 23,703,863 from Ksh 24,051,024 recorded in 2023.
Operation and Finance Cost of Unga Limited Decreases
Despite facing difficulties with the quality of maize grain due to heavy rains impacting the harvest season at the end of the first half of the financial year, Unga limited said it achieved a 37% decrease in operating loss compared to the previous year.
The operating loss stood at Ksh 275.60 million, down from Ksh 440.58 million recorded in 2023.
This according to the miller was made possible by their increased commercial activities, operational efficiencies, and a stronger Kenyan Shilling in the latter half of the financial year.
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The miller’s finance costs also decreased to Ksh 559,412 million in the year ending June 30, 2024, from Ksh 784,368 million in the same period in 2023.
Unga Group’s Board of Directors attributed a 1.4 % decrease in revenue due to the high interest rates that persisted throughout the year.
However, the loss before tax showed a marked improvement, decreasing to Ksh 804,951 in 2024 from Ksh 1,199,358 in 2023.
Additionally, the basic and diluted loss per share improved, dropping to Ksh 5.94 in 2024 from Ksh 8.41 in 2023.
At the same time, Unga Limited stated that the volumes increased by 5%, driven by product quality consistency and enhanced customer experience in the provision of its products.
“We strengthened our relationships with farmers and industry partners, which has elevated consumer trust and increased farmer productivity. Our commitment to exceptional food and feed products continues to yield positive results,” it said.
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The Company’s Outlook
The company noted that geopolitical tensions are expected to continue disrupting global supply chains, making raw material procurement unpredictable.
“We anticipate a challenging business environment in 2024/25,” the group said.
Furthermore, it stated that 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. Our focus will remain on improved customer experience, building our brands and delivering high-quality products that meet the highest safety standards for our consumers,” the miller added.
The miller mentioned the overall business environment showed slow improvement. However, it made a strategic decision to lower selling prices in response to reduced raw material costs, thus allowing it to pass the savings on to its consumers.
In line with its sustainability agenda, UNGA said installations of solar power continued in its facilities, contributing to reduced energy casts.
The Directors do not recommend payment of dividends.
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