Unga share hits one-year high on expected growth

Unga Ltd on Thursday traded at a one-year high, buoyed by investors’ expectation of high profit growth.

The miller’s share has been the best performing stock at the bourse in the last six months gaining 82 per cent to trade at Sh35 per unit.

“It is being driven by performance expectations having recorded significant growth in the first half that ended in December,” said Old Mutual’s Eric Munywoki.

Unga posted a 52.7 per cent growth in half-year net profit. The miller recorded an after-tax profit of Sh210.6 million in the six months to December 2013 compared to Sh137.9 million for similar period in 2012.

Unga has also disclosed intentions to sell some of its land holding and part or its entire 51 per cent stake in packaging firm Bullpak Ltd.

Last year Unga took full ownership of Unga Millers in Uganda after buying out a 40 per cent stake held by minority shareholders for an undisclosed amount.

It is also seeking to buy a Nairobi-based bakery, Ennsvalley.