Unga Group, the manufacturer behind popular flour brands such as Jogoo, Exe and Hostess, has reported a 536 per cent rise in half year profits to Sh523 million for the period ended December 31, 2026 driven by strong improvement in operating performance.
The manufacturer reported a net profit of Sh82.2 million a year earlier.
Revenue rose 12 per cent to Sh14.5 billion, which management credited to the strength of its brands and sustained customer loyalty, even as consumers grappled with reduced purchasing power and raw material costs remained elevated due to global supply constraints and logistics pressures.
Management said in the commentary accompanying the results:
“The Group recorded a 12 per cent growth in revenue compared to the same period last year. This performance was achieved despite a challenging business environment, with consumers facing reduced purchasing power and the cost of key raw materials remaining elevated due to global supply constraints and logistical pressures.”
Operating profit more than doubled to Sh746.8m from Sh351.9 million reported a year earlier. The group also completed installation of a biomass plant at its Nairobi Feeds site during the period, a move expected to bring down energy costs going forward.
Despite the strong results, the board declined to declare an interim dividend, citing the need to preserve cash and rebuild working capital eroded by losses in prior periods.
Looking ahead, management said it would tread carefully in an uncertain global environment, with plans to focus on improving supply chains and increasing efficiency in its production processes to protect performance.
The company also flagged unfavorable weather as a potential risk in the second half, warning it could disrupt the supply of key raw materials, push up costs and put pressure on profits.
