Unga Group swung firmly back into the black in the six months to December 2025, with interim profit after tax surging 537 per cent to KSh 523.2 million. The turnaround was driven by a sharp recovery in operating margins and a steep drop in borrowing costs.
Revenue climbed 12 per cent to an all-time high of KSh 14.48 billion, lifting operating profit to KSh 746.8 million. Improved cost discipline and softer interest rates helped counter weak consumer spending and persistently high raw material prices.
A central factor in the rebound was the plunge in finance expenses, which fell 53 per cent year on year to KSh 106.2 million, reflecting lower interest rates and reduced reliance on debt.
Profit before tax jumped to KSh 688.8 million from KSh 127.0 million, while earnings per share rose to KSh 4.48 from KSh 0.63, restoring interim performance to levels not seen since the company’s mid-2010s high point.
For context, in the half year to December 2017, operating profit reached roughly KSh 717 million on revenue of KSh 11.1 billion.
The latest results mark a decisive break from the difficult 2020 to 2024 period, when high input costs, steep currency depreciation and elevated borrowing expenses eroded margins and squeezed working capital.
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By contrast, the December 2025 figures signal a margin-driven recovery. Operating margin improved to just above 5 per cent from under 3 per cent a year earlier, supported by leaner operations and lighter finance charges.
Management cautioned that household purchasing power remains under pressure and that global supply constraints continue to weigh on key inputs. Weather-related threats to grain supply were also highlighted as a potential risk in the second half of the financial year.
Despite the stronger showing, the board opted not to declare an interim dividend, choosing instead to preserve cash and strengthen working capital depleted during the loss-making years.
