Unga Group Plc, a leader in the Kenyan agri-business sector, has released its audited financial results for the fiscal year ended June 30, 2024, showcasing a year of strategic navigation through economic adversities. The company reported a slight decline in revenue by 1.4%, totaling KES 23.70 billion, down from KES 24.05 billion in the previous fiscal year.
Despite the revenue dip, Unga Group has demonstrated significant improvement in operational efficiency. The operating loss reduced remarkably to KES 275.60 million from KES 440.58 million reported last year. This 37% decrease in operating loss highlights the company’s successful cost management and operational adjustments in response to fluctuating market conditions.
The loss before tax also saw a notable improvement, reducing to KES 804.95 million from a more severe KES 1.20 billion in FY 2023. This represents a reduction of nearly 33%, signaling a stronger handle on cost controls and perhaps a more stable operating environment.
However, the financial statement revealed a slight contraction in total assets, which decreased by 1.9% to stand at KES 11.29 billion. The loss per share has improved, coming in at KES 5.94, compared to KES 8.41 in the previous year, which may provide some solace to investors about the company’s direction.
In their commentary, Unga Group cited several challenges including global supply chain disruptions and unpredictable raw material costs. Nevertheless, the company has been able to leverage these challenges as catalysts for refining their business model, focusing on productivity and customer satisfaction which has led to reduced losses.
“The resilience displayed by Unga Group in FY 2024 reflects our commitment to operational excellence and sustainable practices,” said the management in their commentary. The directors noted improvements in product quality and customer experience as key drivers of maintained revenues despite economic pressures.
Looking ahead, the company remains cautious but optimistic about the future. “Geopolitical tensions and raw material procurement remain unpredictable, but we are poised to adapt and overcome these challenges to maintain our competitive edge,” stated the company’s outlook.
In a move reflecting the prevailing economic conditions and the need to conserve resources for ongoing strategic initiatives, the Board of Unga Group Plc has decided not to recommend the payment of dividends for the year.
As Unga Group continues to streamline operations and enhance its product offerings, stakeholders are watching closely, hopeful for continued improvement in performance as the company adapts to the complexities of modern agribusiness landscapes.
