Posted on October, 1, 2018 at 09:58 am
By GEOFFREY IRUNGU
Grain miller Unga Group has returned to profitability in the financial year ended June after making a loss last year.
The company made Sh783.2 million in the year to June compared to a Sh7.04 million loss incurred in the same period to June 2017.
The revenues rose by a marginal 2.3 per cent to stand at 19.98 billion.
The cost of sales was much lower this year thereby boosting the operating profit. This is as compared to last year when the cost of sales was so high that the operating profit stood at a mere Sh237.87 million despite the revenues being almost the same as this year’s.
The discontinuation of firm’s operations in Uganda cut some of the losses experienced in the previous year from the subsidiary.
“Profit before tax from continuing operations improved by 469 per cent, a notable recovery from the very depressed performance of the prior year,” said Unga Group in a statement on Friday.
Source: Business Daily