Unga Group #ticker:UNGA has ceased operations in Uganda where it made losses three years in a row, with the miller saying it is reviewing its business model in that market.
The Uganda operation lost Sh118.9 million in the year ended June, contributing to the parent company’s slip into a net loss of Sh32.2 million from a net profit of Sh508.8 million a year earlier.
“The Ugandan subsidiary continued to be faced by a challenging business environment leading to an operating loss for the third consecutive year. Bad debt provisions and local currency depreciation against the US dollar significantly worsened its performance,” Unga said in a statement.
“The board has reached a decision to cease milling operations while it evaluates available business remodelling options going forward. This has necessitated the reporting of the entity as a discontinuing operation.”