Unga Group Plc has reported a strong improvement in profitability for the financial year ended June 30, 2026, with net profit rising 82.2% to KSh404.56 million, up from KSh222.06 million a year earlier.
The food and animal nutrition manufacturer also recorded a sharp increase in pre-tax profit, which surged 118.2% to KSh743.68 million.
Revenue grew 16.5% to KSh30.45 billion, supported by higher sales volumes across its Animal Nutrition and Human Nutrition businesses. The growth signals continued demand for the company’s products, even as pricing pressures persisted in parts of its operations.
Operating profit increased by 33.3% to KSh938.45 million, with improved efficiency helping the group strengthen its margins despite pressure in the Human Nutrition business.
Unga also benefited from a reduction in finance costs, which fell 33.8% to KSh261.37 million. The company attributed the improvement partly to exchange rate stability, which helped ease the cost of financing its operations.
However, the stronger earnings came alongside a deterioration in operating cash flow. The group recorded a cash outflow of KSh1.48 billion, compared with an inflow of KSh655.94 million in the previous financial year.
The shift points to increased working capital requirements, meaning more cash was tied up in supporting day-to-day operations as the business expanded. While higher sales contributed to revenue growth, managing cash flow will remain important to sustaining that momentum.
Unga’s total assets rose 36.6% to KSh15.13 billion, reflecting an expansion of its asset base as the company continues to invest in its operations.
Despite the improved performance, the board has proposed no dividend for the year. Instead, the company plans to prioritise reinvestment in capacity and efforts to recover margins.
The decision means shareholders will not receive a payout for the period, as the group focuses on strengthening its operations and positioning the business for future growth.