Unga Group Plc reports 82% profit surge in FY2026
Increased sales volumes across its Human Nutrition and Animal Nutrition businesses drove the growth.
KENYA – Unga Group Plc has reported an 82.2% increase in net profit to KSh404.56 million (US#3.12M) for the financial year ended 30 June 2026, supported by higher sales volumes, improved operating efficiency and lower financing costs, despite mounting working capital pressures and supply chain disruptions.
The Kenyan food and animal nutrition manufacturer recorded revenue of KSh30.45 billion (US$234.68M), up 16.5% from KSh26.13 billion (US$201.39M) in the previous financial year.
Operating profit rose 33.3% to KSh938.45 million (US$7.23M) from KSh704.11 million (US$5.43M), while profit before tax more than doubled to KSh743.68 million (US$5.73M), up 118.2% from KSh340.82 million (US$2.63M) in FY2025.
Lower finance costs, which dropped 33.8% to KSh 261.37 million (US$2.01M), largely supported this financial acceleration, benefiting from improved macroeconomic stability and a steadier exchange rate environment. Basic and diluted earnings per share expanded from KSh 1.73 to KSh 3.27.
Volume growth across key operations drove top-line expansion, particularly in the Animal Nutrition division, which gained market share through route-to-market execution, wider distribution, and customer expansion.
The Human Nutrition segment also grew in volume, driven by flagship consumer brands like Jogoo, Exe, and Famila, though profitability margins continued to face pressure from persistent raw material cost volatility and stiff market price competition.
Additionally, the company advanced its ESG strategy by completing a biomass installation at its Nairobi animal feed plant to lower long-term energy expenditure.
Despite the strong annual outcome, the company experienced working capital pressures as net operating cash flows fell to a deficit of KSh 1.48 billion (US$11.40M) from an inflow of KSh 655.94 million (US$5.05M) in FY2025, driven by investments to manage global supply chain disruptions and higher inventory volumes.
Given these cash requirements and the strategic focus on rebuilding operating margins, the board recommended no dividend payout for the year.
The company attributed the cash flow pressure to higher working capital needs to support higher sales volumes and absorb supply chain and logistics disruptions affecting imported key raw materials.
During the year, Unga Group completed the installation of a biomass system at one of its sites, supporting its environmental, social and governance objectives through a cost-reduction initiative.
Looking ahead, Unga Group plans to prioritize disciplined capital allocation, manage risks in raw material supply chains, and pursue profitable long-term growth.
It will continue monitoring raw material supply risks, interest rates and currency movements while maintaining disciplined capital allocation.
The board did not recommend a dividend for the year, citing the need to reinvest in capacity and support margin recovery.
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