Unga Group, a leading animal and human food processor, has reported a net profit of Ksh 82.17 million for the six months ending December 2024, marking its first profit in two-and-a-half years. This is a significant turnaround from the net loss of Ksh 341.6 million posted during the same period the previous year.
The company attributed its improved performance to a reduction in the cost of sales and lower finance expenses. Revenue for the period increased by 4% to Ksh 12.94 billion, but the real boost to profitability came from a stable supply of raw materials and effective cost management.
Unga Group’s finance costs, including interest on bank loans, overdrafts, and trade finance, fell by 46% to Ksh 225.77 million from Ksh 492.99 million, reflecting the company’s strategic efforts to manage its debt more efficiently.
The firm also credited the completion of its solar project last year as a key factor in lowering operational costs. The solar initiative was estimated to deliver up to 30% savings on energy expenses, contributing to the company’s improved bottom line.
Despite these gains, Unga Group acknowledged ongoing challenges, including reduced disposable incomes, uncertainties in the cost of raw materials, and exposure to interest and currency risks. Nevertheless, the company remains focused on maintaining commercial and operational efficiency to safeguard future profitability.
Unga Group’s return to profitability signals the effectiveness of its cost-saving initiatives and positions the firm for sustainable growth amid a challenging economic environment.
