Unga Group Plc reported an 82.2% increase in net profit to KSh404.56 million for the financial year ended 30 June 2026, supported by higher sales volumes, improved operating efficiency and lower financing costs.

• Revenue increased 16.5% to KSh30.45 billion from KSh26.13 billion a year earlier, while operating profit rose 33.3% to KSh938.45 million.
• Profit before tax more than doubled to KSh743.68 million from KSh340.82 million, while earnings per share increased to KSh3.27 from KSh1.73.
• However, the food and animal-feed manufacturer's annual profit growth masked a sharp slowdown in the second half. Having earned KSh523.17 million in the six months ended December 2025, Unga recorded an implied net loss of KSh118.61 million in the final six months despite continued revenue growth.

Second-half revenue rose 10.3% from the first half to approximately KSh15.97 billion, but operating profit fell 74.3% to an implied KSh191.65 million. Consequently, the operating margin narrowed from 5.16% to 1.20%.

Unga attributed annual revenue growth to higher volumes across its Animal Nutrition and Human Nutrition businesses. Animal Nutrition benefited from market expansion, improved distribution and increased customer penetration, contributing to market-share gains. Human Nutrition also recorded growth, although intense price competition and volatile raw-material costs continued to weigh on margins.

Finance costs declined 33.8% to KSh261.37 million from KSh394.58 million, supported by exchange-rate stability. The KSh133.21 million reduction accounted for approximately one-third of the annual increase in pre-tax profit. However, the effective tax rate increased to 45.6% from 34.8%, limiting the growth in after-tax earnings.

During the year, Unga commissioned a biomass-powered steam system at its Nairobi animal-feed facility, targeting a 45% reduction in steam-generation costs and approximately KSh83 million in annual energy savings.

Operating Cash Flow Turns Negative

Despite higher earnings, Unga's net operating cash flow swung to a KSh1.48 billion outflow from a KSh655.94 million inflow in FY2025. Management attributed the deterioration to increased working capital requirements supporting higher sales volumes and supply-chain disruptions affecting imported raw materials.

Total assets increased 36.6% to KSh15.13 billion, with current assets rising 70.5% to KSh9.99 billion. Current liabilities climbed 68.7% to KSh9.02 billion.

Net financing cash inflows reached KSh1.76 billion, helping offset operating and investing cash outflows. Closing cash balances rose to KSh224.92 million from KSh190.02 million.

The results extend Unga's recovery following combined net losses of KSh1.63 billion in FY2023 and FY2024. Its FY2026 profit represents the highest annual earnings in the seven-year financial dataset, although the past two years' combined profits remain below those earlier losses.

The board recommended no dividend for FY2026, prioritising reinvestment in capacity and margin recovery as the group works towards sustainable, cash-generating growth.