Pole sana, lakini Unga isn't KQ. There's cash on the Balance Sheet and no crazy fuel hedges lining Alex's pockets!

BTW, all of Unga's write-offs (provisions) in 2H were lower than KQ's average monthly losses in one year. Plus NO bailout required (or should be offered) for Unga.

A loss making entity similar to many at the NSE. The two men have screwed us up

“This is a state-of-the-art machine that will be more economical to run and efficient on production, it is going to cut down on our expenses,”

http://www.businessdaily...5314-1241jl8/index.html[/quote]


a step in the right direction.

LMAO... Anyway, what KQ does "reveals" means little to Unga.

2016-17 was a tough year for Unga [like many in FMCG] who supplied Nakumatt.
Acquiring Ennsvalley was a poor business decision but not fatal to Unga.

The drought [& the politics] around food hurt the economy & Unga as well. Protecting inefficient farmers by restricting imports hurts the consumers. Due to lack of grain (maize) the mills were shut down for long periods hurting sales and profits.
Then we had the run-up to the elections. High interest rates, fear and reduced productive economic activity. Why plant maize when it could be torched come harvest time?

2017-18 might be better if we get the election behind us BUT it is not going to be easy:
Interest rates remain high [14% is high].
Spending power is down.
Banks aren't lending much.

All the kelele ya chura about how well KQ is doing matters little to Unga.
Unga (& Ennsvalley) does supply NAS which supplies airlines, including KQ, with baked goods but it's not significant.
Another investee (KK) chose NOT to supply floundering airlines. Unga should have cut off Nakumatt much earlier.

I remain confident my investment in Unga will pay off. Slowly. Not a doubling of revenue. Not a huge profit bump over 2015-16 but a solid gain over 2016-17.

A lesson [similar to IFRS 9] all suppliers should learn from Nakumatt is to provide for SLOW PAYERS as soon as distress is felt. Do NOT throw bad money after good. Start diversifying the sales channels away from a few off-takers.

Do not diss the humble kiosk who sells just a crate/carton a day but pays on time. Find a way to efficiently supply 10,000 kiosks with a crate/carton a day.

I shall be at the AGM to hear what Unga's management plans for the future.

A fraudulent CEO... But @VVS will not see this