Unga Group builds up dividend as profit soars

Money Markets

Unga Group board members look on during the group's annual general meeting at the KICC on December 2, 2014. DIANA NGILA 

By MUGAMBI MUTEGI

In Summary

• Unga’s board has recommended a first and final dividend pay-out of one shilling per every ordinary share held, 25 cents above the amount paid over the last two years.
• “Maize grain availability improved compared to the prior year with prices remaining relatively stable over the first three quarters of the year,” the company said in a statement.

Unga Group's after-tax profit for the full year ending June 2015 has grown by over a third to Sh621.9 million helped by increased sales.

The Nairobi bourse listed flour miller has announced that its profit for the financial year to June increased by 31 per cent as its revenues grew by a tenth to Sh18.7 billion.

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Unga’s performance was pulled back by high finance costs and foreign exchange losses. Finance costs almost doubled to stand at Sh40.2 million from Sh26 million as foreign exchange losses rose to  Sh186.4 million from Sh15.8 million the previous year.

DIVIDEND

Unga’s board has recommended a first and final dividend pay-out of one shilling per every ordinary share held, 25 cents above the amount paid over the last two years.

“Maize grain availability improved compared to the prior year with prices remaining relatively stable over the first three quarters of the year,” the company said in a statement.

“Scarcity in the closing months (of the financial year) caused prices to increase which has since been eased by regional inflows.”

Unga’s total assets during the year increased 8.5 per cent to Sh8.7 billion while its total liabilities increased 4.5 per cent Sh3.3 billion.

The firm said it is in the process of rehabilitating its grain silos to increase storage capacity at its Eldoret plant, a project it says will help improve efficiency and reduce costs in its supply chain.