@Ebenyo

Unga sees a tough year for consumers/FMCG.
The resolutions are typically the boiler plate stuff.

Notes:
- Expansion of the wheat mill, in phases, over 3 years start in 2017 [Eldoret]
- Completion of the silos [doubles capacity] in Eldoret in 2017
- A manager said that Unga cannot satisfy the demand for its wheat products
- New products under "Amana" [Rice has been introduced but it's a very competitive market. Unga should have done this years ago.]
- Unga will introduce smaller packets that are "pocket-friendly"
- Unga will remain a quality supplier i.e. premium pricing
- Ennsvalley is expanding and moving away from Nakumatt as the only major distributor. Chandarana has Ennsvalley manage their bakeries.
- Ennsvalley has consolidated its range of products i.e. less waste, better products, consistency
- Ennsvalley is also expanding [new machinery & larger space]
- No plans to take on additional debt immediately but debt when taken will be manageable.
- CEO said the 6% growth in GDP is not flowing down. He thinks a large part is due to SGR not spread across the economy
- Unga will expand its presence in the country using distributors. Shareholders can apply to be distributors BUT they will be treated the same as business partners
- Heavy expenses on marketing taken as an expense immediately but the payback will come in 3 years. I think he meant brand building eg Amana, Ennsvalley, etc.
- The "drop" in profits was due to a comparison vs the gains from the sale of Bullpak. Profit grew when comparing apples to apples i.e. continuing businesses.
- Unga (& CMA) is lobbying for removal of taxes on all inputs of animal feeds.
- Unga has changed the formulas for some feeds to use "tax-free" ingredients vs taxable soy bran.

- The (hot) Ugandan GM was also there. Consolidation, new products, etc. No different from Kenya. No maize (only wheat) mill in UG. They want to double sales by 2018 but a much smaller operation. Smuggling is a big problem as untaxed goods compete with Unga's products.

Bottomline: Unga sees slower growth (turnover and profits) in 2017 but barring volatile grain prices, the profits will grow modestly. The dividend will be maintained BUT it's unlikely that Unga will do a Rights Issue in 2017.

I came away confident that my investment is in good hands. Vision 2019.

@Ebenyo - Resolutions are formal items that are usually ok'd by the shareholders.

What I described in detail was the Q&A session [relevant to the business] as well as what the management discussed/revealed. These are not resolutions.

At an AGM, often there are discussions AFTER the formal business is over. When many shareholders run to grab food, sit and listen. At KK's AGMs the formal business is disposed of then the "real" session begins where one learns a lot. Same at Unga where the CEO discusses the business & expectations.

Yes! Hit my account yesterday. No complaints. I expect even better things even with a tough 2017. Delayed gratification. I liked the MD's plans for the next 3 years though the noisy AGM wasn't conducive for a proper discussion.

Not me.

What next for Unga

They actually need to do something about thin profit margin.im afraid they will sink to losses.The expenditure is very high.