Unga Group Ltd (NSE:UNGA) – Manufacturing and Allied

Unga Group Ltd (NSE:UNGA) is a Kenya-based flour miller whose stock is listed on the Nairobi Securities Exchange (NSE) and trade under the ticker symbol “UNGA”. Having been founded in the 1900s, Unga is billed as one of the oldest millers in the country. 

Unga own and operates at least five milling factories in Kenya located in Mombasa, Eldoret and Nakuru towns. The company is headquartered in the Nairobi and serves the East African market. Unga recently announced plans to renovate its Eldoret plant to add capacity and boost efficiency.  

Business segments
Unga Group Ltd (NSE:UNGA) operates under two business segments known as Consumer and Animal Nutrition. Its Consumer division deals with products for human consumption, which include a wide range of maize flour brands. The Animal Nutrition unit manufactures animal feeds and other food supplements. 

Subsidiaries
The company operates a number of wholly and partly owned subsidiaries that include Unga Investments Limited and Ennsvalley Bakery. It paid Sh542 million to acquire 51% stake in Ennsvalley Bakery from NAS Holdings in 2014. The management of Unga said at the time that the acquisition was aimed at increasing the company’s asset value and diversifying its revenue stream. In the June 2015 fiscal year, Unga reported having Sh8.7 billion in total assets, which rose 8.5% over the June 2014 fiscal year. 

New ventures
The acquisition of Ennsvalley Bakery reintroduced Unga into the bakery business that it had exited about 15 years ago when it offloaded its stake in Elliots Bakery. In efforts aimed at widening its revenue opportunities, Unga has also ventured into rice business. 

Because Unga imports some of its supplies, the company is prone to risks of adverse foreign exchange movements. 

Unga Group Ltd (NSE:UNGA)’s fiscal year ends on June 30.

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