, NAIROBI, Kenya, Sep 27 – Human and animal feeds manufacturer Unga Limited has posted a 45.5 percent rise in its full year profit ending June 30 from Sh348 million to Sh508 million.
The firm said the profit was due to growth margins in the animal health, nutrition and packaging business.
Operating profit rose 29 percent to Sh1.3 billion helped by crediting a retirement asset revaluation surplus of 198 million.
The company’s operating income grew from Sh103 million to Sh281 million while gross profit went up to Sh1.38 billion from Sh1.36 billion.
However turnover declined 1.36 percent from Sh1.59 billion to Sh1.58 billion.
The management expects the introduction of the 16 percent VAT on animal feeds to negatively impact demand for its products as farmers will not be able to fully pass on the cost to its consumers.
Supply of quality local grain continues to be a challenge for the manufacturer with management stating that they intend to commission additional milling capacity in Nairobi.
The board recommended a final dividend of 75 cents unchanged from the previous year, with book closure set for November 28 this year.