Unga Group predicted a more difficult financial year 2018/19 during which it expects to register lower profitability following increased competition.
It warned that any fiscal measures that would increase the cost of doing business would also negatively impact the company’s performance.
The negative future outlook comes just after the company reported that it had returned to profitability in the financial year ended June after making a loss last year.
Grain miller Unga Group #ticker:UNGA is set to commission a new 300-tonnes per day wheat mill in Eldoret next month. The company said it will also install a soya meal production facility at its Dakar Road plant by June next year.
“The new 300 tonnes per day wheat mill in Eldoret is scheduled for commissioning in October 2018. The company will be installing a soya meal production facility at the Dakar Road plant during the course of the 2018/19 financial year,” the firm said in a statement.
The company predicted a more difficult financial year 2018/19 during which it expects to register lower profitability following increased competition.
“With the prevailing depressed demand and increased competition in the flour-milling business, the 2018/19 financial year is expected to be difficult and less profitable,” said the firm.
It warned that any fiscal measures that would increase the cost of doing business would also negatively impact the company’s performance.
“Any fiscal measures that will increase the cost of doing business will negatively impact performance. The Board will continue to apply strategies to ensure best performance under the prevailing circumstances,” Unga Group said.
The negative future outlook comes just after the company reported that it had returned to profitability in the financial year ended June after making a loss last year.
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