NAIROBI, Kenya, Sep 28 – Unga Group has posted a net profit of Sh783 million for the period ended June 30, 2018, from a net loss of Sh7 million same period 2017.
The performance was boosted by the discontinuation of operations at the Ugandan subsidiary as well as growth in feed volumes in the animal nutrition and health business.
The firm says feed volumes increased significantly with most categories recording positive growth attributable to a sustained supply of competitively priced and high-quality products.
Group sales revenue went up by 2 percent to Sh19.9 billion compared to Sh19.5 billion same period last year even as the government introduced a subsidy program in the first half of the year, enabling the firm to sell its Jogoo and Hodari products at the same price as competition.
However, the company was not allowed to sell Hostess its premium Maize meal brand, during the first half of the year.
“The group continues to roll out the new strategy for Ennsvalley bakery business to recover its revenue base following closure of all in-store operations with Nakumatt of which one element is opening new in-store counters in partnership with leading supermarket chains,” the firm said.
The board has recommended a first and final dividend of Sh1 per share.
In February, New York Stock Exchange-listed Seaboard Corporation Limited announced plans to acquire Unga Group Holdings subject to regulatory approvals.
The firm, which currently has 2.29 percent stake in Unga Group, proposed a cash offer for ordinary shares in Unga Group that are currently not owned by the corporation or its affiliates.
The corporation gave Sh40 per ordinary share offer, valuing the deal at Sh3.03 billion.
Sea Board is one of the largest United States companies engaging in pork production and processing and ocean transportation.
In Africa, the company has operations in a number of companies that are engaged in commodity merchandising, grain processing and sugar production.
Seaboard Corporation’s subsidiaries and affiliates employ more than 23,000 people in more than 45 different countries, mostly in the U.S., Latin America and Africa.
With net sales of approximately $6.67 billion annually, Seaboard Corporation is listed 387 on the 2014 Fortune 500 list.
The corporation hopes the completion of the acquisition to be not later than September 30, 2018.