Growing expenses more than halve Unga Group net earnings
What you need to know:
- The company did not disclose its rising cost base which was exacerbated by a 2.5 per cent dip in sales to Sh10.2 billion.
- It however said the rising expenses were spread across across various units.
Human and animal feeds manufacturer Unga Group saw its net profit drop 2.4 times to Sh132.8 million in the half year ended December on the back of higher costs.
It made a net profit of Sh327.1 million a year earlier.
The company did not disclose its rising cost base which was exacerbated by a 2.5 per cent dip in sales to Sh10.2 billion.
It however said the rising expenses were spread across across various units including production and marketing.
“Manufacturing overheads, selling and general administration expenses increased in the period compared to prior year,” Unga said in a statement on Friday.
“This was a consequence of increased investments in human resources, marketing spend and increased amortisation of the recently commissioned ERP system,” it added.
