Manufacturer Unga Group saw its net profit drop 18.1 per cent in the year ended June on the absence of gains from sale of a 51 per cent stake in packaging firm Bullpak Limited the year before.
The Nairobi Securities Exchange-listed firm’s net earnings in the period stood at Sh508.8 million, down from the previous year’s Sh621.8 million that was boosted by a Sh192 million gain from the Bullpak transaction.
Excluding the one-time gain, Unga’s profit from normal operations jumped 18.4 per cent to Sh508.8 million partly lifted by a 5.4 per cent increase in sales to Sh19.7 billion.
The company said its expenses, which were not disclosed, rose due to more investment in ICT, employees and marketing activities.
Unga declared a dividend of Sh1 per share, same as the payout for the previous year. The dividend is to be paid on January 11, 2017 to shareholders on the record as of December 1.
The company said the recent exemption of VAT on some materials used in the production of animal feeds in Kenya had helped to keep prices stable.
Unga said it will soon complete its expansion of silos, a move that will boost its supply chain efficiency and reduce costs.
