Unga Group stock skips dividend as FY2026 profit rises 82.2%

Published on 11/12/2026 at 01:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Unga Group stock delivered stronger full-year earnings but kept payouts suspended. Management plans to retain cash for capacity and margin recovery.

Profit recovery meets payout restraint

Unga Group reported stronger full-year earnings after higher sales volumes and operating efficiency gains.
The board recommended retaining earnings for capacity investment and margin recovery instead of paying a dividend.
Weak second-half performance and negative operating cash flow remain key investor considerations.

UNGA, KE0000000513, Illustration mit AI erstellt.

Unga Group reported stronger full-year earnings for the year ended June 30, 2026, but recommended no dividend for a seventh consecutive year. Business Radar published the result on October 17, 2026, citing the company's decision to reinvest earnings in capacity and margin recovery.

Sales growth lifts annual earnings

Revenue increased to KSh30.45 billion from KSh26.13 billion, while profit before tax rose to KSh743.68 million from KSh340.82 million. Net profit reached KSh404.5 million, up from KSh222 million a year earlier, and earnings per share increased to KSh3.27 from KSh1.73.

The annual improvement was supported by higher sales volumes, better operating efficiency and lower financing costs, according to the report. Business Radar also cited a weaker second half: earnings of KSh523.17 million in the six months to December 2025 implied a loss in the January-to-June period.

Cash generation remains a risk

The profit recovery is accompanied by pressure on cash generation. Operating cash flow turned negative during the year, while additional borrowing helped fund the shortfall, leaving investors focused on working capital needs and the durability of the margin recovery.

For shareholders, the no-dividend recommendation keeps capital allocation at the center of the investment case. Unga last paid a dividend for the year ended June 2019, and the board's latest decision favors reinvestment over near-term income.

Unga's nutrition portfolio

Unga Group is a Kenya-based holding company with majority interests in businesses that manufacture and market human nutrition, animal nutrition and animal health products. Its website highlights Unga Limited and Unga Farmcare among its brands and describes a business serving nutrition needs across the value chain. The group remains focused on food and feed markets, with capacity investment and margin recovery shaping its current operating priorities.