Unga Group stock faces seventh year without dividend
Published on 11/05/2026 at 00:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSUnga prioritizes reinvestment over dividends
- Unga Group plans to retain earnings for capacity expansion and margin recovery.
- Animal nutrition benefited from higher volumes, market expansion and improved distribution.
- Human nutrition grew, but pricing pressure and raw-material volatility continued to weigh on margins.
Unga Group will retain its earnings after recommending no dividend for the year ended June 2026, extending the payout suspension into a seventh year. Business Daily reported the decision on Friday, October 16, 2026, citing the company's priority of reinvesting in capacity and restoring margins.
Profit recovery meets capital needs
Net income rose 82.2 percent to KSh404.5 million in the financial year to June 2026 from KSh222 million a year earlier. Revenue increased to KSh30.4 billion from KSh26.1 billion, while gross margin improved to 3.08 percent from 2.7 percent.
The result was supported by higher volumes across animal and human nutrition, tighter cost management and lower finance costs. Unga said animal nutrition benefited from market expansion, broader distribution and new customers, while human nutrition faced price-based competition and volatile raw-material costs.
Cash generation remains central
Management linked future shareholder distributions to sustainable profit and cash generation rather than earnings alone. Operating cash flow reached KSh1.085 billion in the 2025 annual report after a KSh725 million outflow in 2024, although the latest annual result also carried a higher effective tax rate of 45.6 percent.
The dividend decision leaves investors dependent on future capital gains while the group directs funds toward operations and strategic investment. Unga also completed a biomass installation at one site as part of efforts to reduce costs and meet environmental targets.
Business focus and market position
Unga Group is a Kenya-based food manufacturer focused on human nutrition and animal nutrition. It holds a 65 percent interest in operating businesses including Unga Farm Care (E.A.) and Unga Limited, while Seaboard Corporation holds the remaining 35 percent in those businesses. The company operates in markets where human nutrition faces intense price competition and animal nutrition is pursuing expansion and distribution gains.
Unga Group at a glance
- Company: Unga Group
- Primary markets: Human nutrition and animal nutrition
- Financial year: Year ended June 2026
- Net income: KSh404.5 million
- Revenue: KSh30.4 billion
- Dividend: None recommended for the year
The broader market backdrop is covered in Current market reports.
