Animal and human food processor Unga Group has returned to profitability with a Sh222 million net profit for the full year ended June 2025, helped by higher sales and reduced costs.
Reduction in costs also contributed to the company’s earnings growth, with the operating profit standing at Sh704 million compared with an operating loss of 275.6 million a year earlier.
“Macroeconomic conditions remained favourable, including decline in interest rates and steady climatic patterns that moderated raw material price volatility,” Unga said in a statement.
The firm's finance costs, which includes interest expense on bank loans, overdrafts and trade finance dropped by 29.5 percent to Sh394.5 million from Sh559.4 million. The decline in finance costs followed a reduction of the company debt and declining interest rates.
“This performance reflects continued strategic focus on customer centricity, operational efficiency, and prudent financial management including reduction in debt,” said the firm.
The company’s total liabilities reduced by Sh442 million to Sh5.7 billion with current liabilities being the largest stock at Sh5.2 billion. Its long term liabilities, recorded a rise which was wiped off by the decline in short term debts signaling reduced reliance on overdrafts and other bridge loans.
“Stability of the Kenya shilling against major currencies further supported the group’s financial position,” added the firm.
The food processor disclosed it had cut its energy costs following installation of solar power in all its sites. The cost and stability of power supply has been a headache for most manufacturers in the country forcing them to look for alternative supplies away from Kenya Power.
The company sees global economic volatility, including developments in supply chains and currency movements as potential downsides to its growth.
Unga’s share price at the Nairobi Securities Exchange has gained by 16.09 percent to Sh23.45 in the last three months.
