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Unga Group Ltd.
n/a
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Par Value: 5/-
Closing Price: 30.00
Total Shares Issued: 75708872.00
Market Capitalization: 2,271,266,160
EPS: 2.39
PE: 12.552
Unga Group PLC HY 2020 results through 31st December 2019 vs. 31st December 2018
FY Earnings through 30th June 2021 versus through 30th June 2020
FY Revenue 17.812638b versus 17.569967b
FY Operating Profit 616.202m versus 299.781m
FY Finance Costs [150.567m] versus [200.228m]
FY Profit before Tax 485.232m versus 118.090m
FY Profit after Tax 293.477m versus 66.161m
FY EPS 2.39 versus 0.45
FY Assets 10.048779b versus 12.050876b
Cash at End of Period 1.521050b versus 661.486m
COMMENTARY
The Groups revenue and profit for the year from continuing operations increased 1% and 343% respectively.
International wheat prices increased by at least 30% during the year due to poor harvest and adverse fiscal measures imposed by some of the leading exporting economies.
The Company received payment for grain supplied in support of the government led maize subsidy program in 2017. The interest element of the debt remains outstanding.
The long outstanding tax refunds were also received during the year ending a protracted litigation process. Both receipts improved profit for the year.
Subsequent to the end of the financial year, the Company entered agreements with Nutreco BV to form two joint ventures one to expand aquafeed production and marketing capability in the region, the other to manufacture animal feed and expand the sale of feed premixes in Uganda.
Agreement was also reached with Big Cold Kenya Limited to buy its bakery business and assets. Both transactions are expected to be closed in the first half the year 2021 22.
HY Turnover 10.033267b vs. 9.034206b +11.059%
HY Operating profit 251.668m vs. 421.640m -40.312%
HY Other [expenses]/ income [56.841m] vs. 41.080m -238.367%
HY FX gain/ [loss] 24.594m vs. [25.350m] +197.030%
HY PBT 219.421m vs. 437.370m -49.832%
HY Tax expense [68.099m] vs. [131.082m] -48.049%
HY Profit for the period 151.322m vs. 306.288m -50.595%
HY Profit attributable to owners of the parent 94.561m vs. 195.645m -51.667%
HY Profit attributable to non-controlling interests 56.761m vs. 110.643m -48.699%
Basic and diluted EPS 1.25 vs. 2.58 -51.550%
Total assets 10.334888b vs. 10.313815b +0.204%
Cash and cash equivalents at the end of the period [42.842m] vs. 900.926m -104.755%
No interim dividend
COMMENTARY
Revenue increased by 11% over prior period driven by the human nutrition business. The decline in profit before tax is attributable to reduced volumes in the animal nutrition segment and increased cost of maize and wheat grains, attributable to unfavourable local weather conditions and rallying world wheat prices. In addition to low consumer demand, local farmers faced increased competition from imports of farm produce from the region, specifically in the poultry and dairy sectors.
The Kenya Shilling remained strong against the US Dollar. Compared to prior period, finance costs increased due to CAPEX and working capital related borrowing.
Outlook
The continued low consumer demand coupled with excess production capacity, aggressive finished product pricing across the industry and restricted maize grain supply will remain a challenge. The Board and management will continue to work on strategies to deliver improved performance. The slow pace of Value Added Tax refunds will continue to strain our cash flows and in turn increase finance costs. In view of the results, the Directors do not recommend the payment of an interim dividend.
PROFIT WARNING
Unga Group Plc (the Company) makes this announcement pursuant to Regulation G.05 (1) (t) and (2) of the Nairobi Securities Exchange Listing Manual and Capital Markets (Securities) (Public Offers, Listing and Disclosure) Regulations, 2002. Based on the Companys unaudited financial results for the first six months ended 31 December 2019 and the Company's second half forecast, profit for the full year is likely to be at least 25% lower than prior year.
BY ORDER OF THE BOARD
W Jumba
Company Secretary
27 February 2020
Unga Group Limited FY 2019 results through 30th June 2019 vs. 30th June 2018
FY Revenue 17.895670b vs. 19.982070b -10.441%
FY Operating profit 718.960m vs. 1.267833b -43.292%
FY Finance income 62.990m vs. 116.649m -46.000%
FY Finance costs [166.748m] vs. [90.786m] +83.671%
FY PBT 615.202m vs. 1.293696b -52.325%
FY Profit for the year 544.814m vs. 783.203m -30.438%
FY Profit attributable to owners of the parent 342.147m vs. 509.083m -32.792%
Basic and diluted EPS 4.52 vs. 6.72 -32.738%
Total assets 10.646066b vs. 9.932664b +7.182%
Cash and cash equivalents at the end of the period 841.338m vs. 1.088455b -22.703%
Dividend 0.50 vs. 1.00 -50.000%
COMMENTARY
The Groups sales revenue declined by 10% over prior year. Profit for the year decreased by 30%. Volumes and margins were under pressure throughout the year due to increased competition. This mainly affected the human nutrition business.
Maize grain was in short supply and highly priced in the second half of the year. To a large extent, increased raw material prices were absorbed by animal nutrition business, which constrained margins whilst supporting volume growth.
The commissioning of a new wheat mill in Eldoret in December 2018 increased capacity and further improved production efficiencies.
The bakery business recorded a significant reduction in losses despite a 16% drop in revenues. The reduction in revenues was mainly attributable to credit risk challenges in the retail sector.
FUTURE OUTLOOK
The high cost of maize and the availability of lower priced, regionally produced, poultry and milk imports will continue to be a challenge to the farmers ability to realize a fair return on their production of meat, milk and eggs. This is likely to impact the animal nutrition business.
A new soybean meal plant was commissioned at the Nairobi feed plant at the end of the 2018 19 financial year this is expected to provide raw material price improvements going forward.
With the prevailing depressed demand and increased competition in the human nutrition business, the 2019 20 financial year is expected to be difficult. In addition, fiscal measures that will increase the cost of doing business will negatively impact performance. The Board will continue to apply and monitor strategies to ensure best performance under the prevailing circumstances.
Given the prevailing challenging business environment and the capital requirements associated with execution of the Groups current business strategies, the Board recommends payment of a first and final dividend of Sh 0.50 per share (prior year Sh 1.00), subject to approval by the shareholders at the Annual General Messing to be held on 5 December 2019. Register of Members will be closed for one day from the close of business on 5 December 2019 to the close of business on 6 December 2019.
The dividend will be paid on or about 15 January 2020 to the shareholders registered in the books of the Company at the close of business on 5 December 2019.
Unga Group PLC HY 2019 results through 31st December 2018 vs. 31st December 2017
HY Turnover 9.034206b vs. 11.077744b -18.447%
HY Operating profit 423.831m vs. 716.796m -40.871%
HY Other income 41.080m vs. 16.591m +147.604%
HY FX loss [25.350m] vs. [0.301m] -8,321.927%
HY PBT 439.561m vs. 733.087m -40.040%
HY Tax expense [131.082m] vs0 [221.954m] -40.942%
HY Profit for the year from continuing operations 308.479m vs. 511.134m -39.648%
HY Profit for the year from discontinued operations [2.191m] vs.
HY Profit attributable to owners of the parent 195.645m vs. 330.274m -40.763%
HY Profit attributable to non-controlling interests 110.643m vs. 180.860m -38.824%
Basic and diluted EPS 2.58 vs. 4.36 -40.826%
Total assets 10.313815b vs. 10.676292b -3.395%
Cash and cash equivalents at the end of the period 900.926m vs. 1.085247b -16.984%
No interim dividend
COMMENTARY
The Group reports an 18% decline in revenue compared to prior year. Volumes and margins declined in the human nutrition business due to increased competition and depressed consumer demand. The animal nutrition business recorded improved performance, whilst the bakery business met expectations.
Wheat milling capacity and efficiencies have improved with the commissioning in December of the new wheat mill in Eldoret. The soybean meal plant installation is underway at Dakar Road and is expected to be completed by end this financial year.
FUTURE OUTLOOK
With the prevailing depressed demand for flour, the second half of the year ending June 2019. will continue to be challenging. Moreover, the full year results are expected to be significantly lower than prior year. The Board will continue to apply strategies to ensure best performance under the circumstances.
PROFIT WARNING
UNGA GROUP Pie (the Company) makes this announcement pursuant to Regulation G.05 (1) (f) and (2) of the Nairobi Securities Exchange Listing Manual and the Capital Markets (Securities) (Public Offers, Listing and Disclosure) Regulations,2002.
Based on the Companys unaudited financial results for the first six months ended 31 December 2018 and the Companys second half forecast, profit for the full year is likely to be at least 25010 lower than prior year.
The Directors do not recommend the payment of an interim dividend.
Unga Group Limited FY 2018 results through 30th June 2018 vs. 30th June 2017
FY Revenue 19.982070b vs. 19.528785b +2.321%
FY Operating profit 1.273403b vs. 237.868m +435.340%
FY Finance income 116.649m vs. 67.415m +73.031%
FY Profit before taxation 1.299266b vs. 228.350m +468.980%
FY Profit for the year from continuing operations 788.774m vs. 111.912m +604.816%
FY Profit for the period 783.203m vs. [7.039m]
FY [Loss]/ Profit attributable to owners of the parent 509.082m vs. 37.371m +1,262.238%
Basic and diluted EPS 6.72 vs. 0.49 +1,271.429%
Total assets 9.932664b vs. 9.455316b +5.048%
Cash and cash equivalents at the end of the period 1.088455b vs. 1.714755b -36.524%
Dividend 1.00 vs. 1.00
Company Commentary
Discontinuation of operations at the Ugandan subsidiary shielded the Group from some of the losses suffered in the preceding year, in which an investment impairment was recorded.
exploration of regional opportunities is ongoing.
Conclusions
Strong rebound.
HY Turnover 11.077744b vs. 10.246913b +8.108%
HY Operating profit 716.796m vs. 172.993m +314.350%
HY Other income 33.035m vs. 33.111m -0.230%
HY Finance [cost]/ income [16.444m] vs. 15.118m -208.771%
HY FX loss [0.301m] vs. [29.783m] -98.989%
HY PBT 733.087m vs. 191.439m +282.935%
HY Profit for the period 511.133m vs. 132.873m +284.678%
HY Profit attributable to owners of the parent 330.274m vs. 92.540m +256.899%
HY Profit attributable to non-controlling interests 180.859m vs. 40.333m +348.414%
Basic and diluted EPS 4.36 vs. 1.22 +257.377%
Total assets 10.676292b vs. 10.209960b +4.567%
Cash and cash equivalents at the end of the period 1.085245b vs. 1.093590b -0.763%
No interim dividend
Company Commentary
Animal nutrition volumes increased by 20% supported by a stable supply of raw material that ensured continuous supply during the period of drought.
Human Nutrition volumes declined by 4%
our New product lines pulses, rice and fish feed continue to show growth.
Selling and administrative expenses increased in the period compared to the prior year, mainly as a consequence of increased provisions for doubtful debts in the FMCG business.
Bakery business is working to recover its market presence.
new wheat mill project underway in Eldoret
current sluggish demand for wheat and maize products may negatively impact volumes and profitability in the second half.
Conclusions
Well Well. The Offer by Seaboard dated 22 FEB-2018 has to be improved
22-FEB-2018 :: Public Announcement by Unga Group Plc on the Offer by Seaboard Corporation for shares in Unga Group PLC.
http:///2EKXWt0
FY Turnover 19.528785b vs. 18.947944b +3.065%
FY Operating profit 201.800m vs. 714.328m -71.750%
FY Finance income 67.415m vs. 80.072m -15.807%
FY Finance costs [43.274m] vs. [45.241m] -4.348%
FY Foreign exchange losses [33.659m] vs. [11.075m] -203.919%
FY Profit before taxation 192.282m vs. 738.084m -73.948%
FY Profit for the year from continuing operations 86.665m vs. 511.476m -83.056%
FY Profit for the year from discontinuing operations [118.951m] vs. [2.660m] -4,371.842%
FY [Loss]/ Profit for the year [32.286m] vs. 508.816m -106.345%
FY [Loss]/ Profit attributable to owners of the parent 20.961m vs. 327.031m -93.591%
FY [Loss]/ Profit attributable to non-controlling interests [53.247m] vs. 181.785m -129.291%
Basic and diluted EPS 0.28 vs. 4.31 -93.503%
Basic and diluted EPS from continuing operations 1.85 vs. 4.35 -57.471%
Basic and diluted EPS from discontinuing operations [1.57] vs. [0.04] -3,825.000%
Total assets 10.267471b vs. 9.199783b +11.606%
Cash and cash equivalents at the end of the period 1.714755b vs. 1.102359b +55.553%
Dividend 1.00 vs. 1.00
Company Commentary
Sales volume +1.8%
Revenue increased +3%
Wheat +10% Porridge +6% maize -2.00%
Operating Profit declined by -71.7%
Kenyan business environment was characterised by maize supply challenges caused by the regional drought and crop disease impact.
Ugandan Subsidiary continued to be faced by a challenging business environment leading to an operating loss for the 3rd consecutive year
Bad Debt provisions and local currency depreciation against the Dollar significantly weakened its performance
The Board has reached a decision to cease milling operations...necessitated the reporting the Entity as a discontinuing operation.
The bakery business was negatively impacted by credit challenges facing the retail sector resulting in an exit from most Nakumatt stores where it had bakery implants and counters
Goodwill impairment of 151m
has reached an agreement with minority shareholders to purchase the entire 48% non-controlling interest in Ennsvalley Bakery limited
Group commissioned a state of the Art fish feed plant
Grain storage capacity was significantly increased
Conclusions
sharply weaker Year on Year Earnings.
very muscular Cash and Cash Equivalents position which is worth 22.64 a share!
NAV must be well North of 2.195b market Cap.
Unga Group Limited H1 2016 results through 31st December 2016 vs. 31st December 2015
H1 Turnover 10.246913b vs. 10.519764b -2.594%
H1 Operating profit 172.993m vs. 492.724m -64.890%
H1 Forex loss [29.783m] vs. [32.626m] -8.714%
H1 Profit before taxation 191.439m vs. 463.892m -58.732%
H1 Profit for the year 132.873m vs. 327.189m -59.390%
EPS 1.22 vs. 2.83 -56.890%
Total assets 10.209960b vs. 9.568280b +6.706%
Cash & cash equivalents at the end of the year 1.093590b vs. 0.653266b +67.403%
No interim dividend
Company Commentary
Revenue and profit before Tax declined by 2.6% and 58.7% respectively.
Flour volumes increased, maize flour and major animal category feed volumes reduced over prior year.
adverse climate that prevailed in the region during the first half of the financial year, and non-availability of quality maize grain posed a significant challenge in the ability quality maize grain posed a significant challenge in the ability to produce maize meal and animal feeds at full capacity and at competitive price.
high raw material costs and lower volumes resulted in reduced margins
general slow-down in demand and trading difficulties associated with the formal retail sector has affected the company's nutrition business in Kenya and Uganda.
Ugandan subsidiary continues to face challenges
Bakery business is undergoing a restructuring exercise
Maize grain shortage is expected to remain a major challenge for the remainder of the year
Conclusions
Sharply weaker H1 Earnings and they have issued a profits warning.
The accompanying commentary is quite granular in underlying the challenges.
FY Turnover 19.743564b vs. 18.723250b +5.449%
FY Operating profit 674.034m vs. 754.630m -10.680%
FY Other income 120.588m vs. 107.709m +11.957%
FY Foreign exchange losses [11.075m] vs. [186.402m] -94.059%
FY Profit before tax 734.401m vs. 635.695m +15.527%
FY Profit for the year from discontinued operations vs. 192.085m
FY Profit for the year 508.816m vs. 621.866m -18.027%
EPS 4.32 vs. 5.27 -18.027%
Total Assets 9.199783b vs. 8.635129b +6.539%
Cash and cash equivalents at the end of the period 1.102359b vs. 1.192705b -7.575%
Dividends 1 per share
Company commentary
Turnover and profit for the year from continuing operations increased by +5.4% and 18.4% respectively.
Operating profit was impacted by higher distribution and administration expenses, attributable to ICT system upgrades, human resources and brand equity building.
production of maize flour and porridge declined compared to the prior year shortage of quality maize grain in H2.
Final dividend of 1 a share
Unga Group Limited H1 2016 through 31st December 2015 vs. 31st December 2014
H1 Revenue 10.519764b vs. 9.651343b +8.998%
H1 Operating profit 492.724m vs. 409.764m +20.242%
H1 Foreign exchange losses [32.626m] vs. [52.088m] -37.364%
H1 Profit before tax 463.892m vs. 376.212m +23.306%
H1 Income tax expense [136.703m] vs. [115.014m] +18.858%
H1 Profit for the period from continuing operations 327.189m vs. 261.199m +25.264%
H1 Profit for the period from discontinued operations – vs. 151.042m
H1 Profit for the period 327.189m vs. 412.241m -20.632%
EPS 2.83 vs. 3.41 -17.009%
No interim dividend
Company Commentary
Operating Profit improved by +20% over prior year, driven by growth in sales volumes and further gains in conversion efficiency.
The decline in net Profit for the period is primarily attributable to the gain in the prior year from the disposal of the Groups investment in Bullpak limited
Depreciation of the Kenya and the Uganda Shilling against the US Dollar, resulted in significant foreign exchange translation losses.
Conclusions
The Organic growth story is veiled by the Non Repeat of the One Off Gain from the prior year
Unga Group Limited FY Earnings through 30th June 2015 vs. through 30th June 2014
FY Turnover 18.723250b vs. 17.002302b +10.1%
FY Operating profit 754.630m vs. 540.746m +39.6%
FY Other income 107.709m vs. 68.742m +56.7%
FY Finance costs [40.242m] vs. [26.003m] +54.8%
FY Foreign exchange losses [186.402m] vs. [15.750m]
FY Profit before taxation 635.695m vs. 567.735m +11.97%
FY Profit for the year from continuing operations 429.781m vs. 382.767m +12.3%
FY Profit for the year from discontinuing operations 192.085m vs. 91.727m +109.4%
FY Profit for the year 621.866m vs. 474.494m +31.1%
FY EPS 5.27 vs. 3.65 +44.4%
Final Dividend 1 shilling a share
Conclusions
Interesting business spanning Wheat, Fast Gro broiler feed range, Amana range of Pulses. reentered bakery sector by acquiring a majority
shareholding in Ennsvalley Bakery.
Grain silo facilities being rehabilitated
increasing grain storage capacity at its Eldoret Plant
strong Earnings and on a single digit PE
First Half Results through 31st December 2014 versus through Dec 2013 [restated]
First Half Revenue 9.651343b versus 8.836517b
First Half Operating Profit 409.764m versus 293.541m
First Half Other Income 169.579m versus 32.964m
Foreign Exchange Losses [52.088m] versus 4.263m
First Half Profit before Taxation 527.254m versus 330.768m
First Half Profit after Tax 412.241m versus 231.537m +78.045%
First Half Earnings Per Share 3.41 versus 1.96
Company Commentary
improved financial performance attributable to the full period impact of capacity and efficiency gains from the new wheat mill and gains from the sale of groups investment in Bullpak limited
Increased sifted maize meal volumes realised as a consequence of a 25% average decline in finished product prices
new route to consumer strategy for its kenyan human nutrition business
acquisition of majority shareholding in Ennsvalley Bakery limited is progressing towards completion.
Conclusions
Strong Earnings.
Full Year Earnings through 30th June 2014 versus through 30th June 2013
FY Turnover 17.002302b versus 15.142017b +12.3%
FY Operating Profit 540.746m versus 313.284m
FY Other Income 68.742m versus 101.462m
FY Finance Costs [26.003m] versus [8.950m]
FY Profit Before Tax 567.735m versus 389.458m
FY Profit for the Year from continuing operations 382.767m versus 264.773m
FY Profit for the year from discontinuing operations 91.727m versus 73.423m
FY Profit for the Year 474.494m versus 338.196m +40.3%
FY EPS 6.35 versus 2.59
The Board is pleased to recommend the payment of a first and final dividend of Shs. 0.75 per share, subject to approval by the shareholders at the Annual General Meeting to be held on 2 December 2014.
Company Commentary
gross profit increased by 33%, reflecting volume growth and processing improvements realised in the human nutrition sector.
Flour volumes grew by 10.9% volumes in the animal nutrition and health
sector increased by 9.8%.
Conclusions
Compelling Earnings.
6 months through 31st December 2013 versus through 31st Dec 2012
H1 Turnover 8.836517b versus 8.188051b +7.919%
H1 Operating Profit 261.496m versus 206.048 +26.91%
H1 PBT 298.723m versus 195.809m +52.55%
H1 Profit before minority interests 210.604m versus 137.916m
H1 Profit attributable to Shareholders 122.049m versus 84.914m
H1 EPS 1.61 versus 1.12 +43.75%
Company Commentary
The introduction of VAT on animal nutrition products resulted in reduced demand as farmers sought alternative sources of feed supply. Since maize meal and wheat flour are now exempt from VAT, the company is no longer able to claim back input VAT (they were previously zero rated) and has been placed under further margin pressure.
A new and more efficient wheat mill was commissioned at the Commercial Street site towards the end of the last calendar year. Several projects are ongoing towards improving animal feed diets to bolster our high quality product offering as well as restructuring of the route to market to bring us closer to our customers and improve consumer relations.
The cost of wheat products in Uganda was relatively higher than Kenya, following the introduction of 10% import duty on imported wheat grain, 18% VAT on finished product and 60% import duty on flour imports from Kenya. Consequently, informal imports from Kenya will pose an increasing challenge to the Ugandan subsidiary.
Following shareholder approval at the November 2013 AGM, the Company is divesting of its shareholding in Bullpak Limited. Meanwhile, the Company is progressing with its plans to invest in the premium end of the bakery product market.
The Directors do not recommend the payment of an interim dividend.
Conclusions
Strong Results.
Swot Analysis 6 Months to Dec 2011 versus 6 Months to Dec 2010
Turnover 8.420070b versus 6.263068b
Operating Profit 213.808m versus 356.544m
PBT 344.261m versus 366.694m
PAT 149.027m versus 146.704m
EPS 1.97 versus 1.94
Conclusions
On a PE Basis its a very cheap share.
Swot Analysis FY to June 2011 versus June 2010
Turnover 13.214442b versus 11.524454b
Gross Profit 1.677079b versus 1.220185b
Net Foreign Exchange Losses [183.175m] versus [77.33m]
PAT 441.043m versus 236.173m +86.745%
EPS 3.57 versus 1.81
0.75 Final Dividend
Conclusions
Strong FY Results. Dividend Yield of 7.14% and a PE of 2.9411 Looks compelling
Swot Analysis FY to June 2011 versus June 2010
Turnover 13.214442b versus 11.524454b
Gross Profit 1.677079b versus 1.220185b
Net Foreign Exchange Losses [183.175m] versus [77.33m]
PAT 441.043m versus 236.173m +86.745%
EPS 3.57 versus 1.81
0.75 Final Dividend
Conclusions
Strong FY Results. Dividend Yield of 7.14% and a PE of 2.9411 Looks compelling |
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Data Source: Nairobi Stock Exchange
Trading Day: 15 Oct 2021
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29-SEP-2021 :: Full Year Results |
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Audited Financial Results for the Year Ended 30th June 2021.
Download N.S.E Announcement
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26-FEB-2021 :: Half Year Results |
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Unaudited Financial Results for the Six Months Ended 31st December 2020.
Download N.S.E Announcement
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