Rank: New-farer Joined: 4/6/2013 Posts: 95
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muganda wrote:What a frame of mind! Kick the tyres. Kick them all the time.Aly-Khan Satchu wrote:And my final observation is around EABL's 1st half results release. These results were having to hurdle an 85% collapse in Senator beer volumes and when you look at the results in totality they were surprisingly muscular.
The flagship brand Tusker was +17%, Uganda was a stand out, reserve spirits followed on a triple digit full year gain with a +50% gain.
My point is arrived at via what has happened because of the excise duty increase. The Government targeted Sh6.2 billion of extra revenue and because of the collapse post the price increase, it's actually a negative return. My final observation is therefore this. Imagine if this is extrapolated across the economy.
I think legitimate tax payers [and its a narrow base] have now been squeezed beyond the limit that it is in danger of cannibalising itself as it cannibalised Senator.
Let Senator be a lesson and someone should calculate the fall-out. The number of outlets closed, the number of jobs lost, the number of work days lost because of the spike in llicits. In other news, shakeup at the board begins. Old political hands out, more local regulatory savvy folks plus a close eye from Diageo Africa COO http://www.businessdailyafrica....80/-/2ce8dd/-/index.html muscular results? The fundamentals says a different story. Based on its ROE and an MARR of 10pc this counter is now valued below 100kshs but due to that its a foreigners favorite and emotionally traded by locals,it can hold up above the mark. Monopoly was the industrial age money game and the name of the new game of money today in the information age is CASHFLOW
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