From the Annual Report (30 June 2015)
"new Route-to-Consumer model... improved sales in the first quarter of the new financial year"
Sounds good. It should translate to greater volumes (& turnover) through the entire FY.
"...we have been selected as exclusive flour suppliers to Kentucky Fried Chicken (KFC) and to Nestle in Kenya, and are also approved suppliers to Domino’s pizza outlets. We expect Unilever to join this list during the 2016 financial year."
Quality. I hope it also means Unga becomes the first port of call for other fast food firms.
"able to secure reasonably well-priced cotton seed cake and sunflower seed cake supplies through forward contracting."
Yeah! Unlike KQ!
"We opened a sales depot in Nyali (Mombasa) during the first half of the financial year, while our Thika depot opened during the first month of the new financial year."
I saw the green-painted building in Bamburi along Malindi Road
"Our new Route-to-Consumer model has been finalised and will be rolled out during the course of 2016"
There will be a cost to this but lessons learnt from 2015 will help.
"Our brand presence continued to strengthen in Tanzania, with increased sales of Fugo® feeds, produced at Interchick’s plant near Dar es Salaam. We will use this platform to introduce our Viminera® feed premixes during 2016."
Good to see a Kenyan firm doing well in TZ
"the Hoshin Kanri process (in Japanese, Hoshin means “compass needle” or “direction”, and Kanri means “management” or “control”) has supported line management to embed a healthy performance management culture across the company, with focus on delivery, impact and adherence to our values."
Unga has been employing Japanese management philosophies and processes.
"to fill openings in senior management positions and, by the end of the year, had individuals in place as General Manager’s for Unga Farm Care (EA) Limited and Unga Limited, and filled the new position of Head of Strategic Planning and New Business Development."
Increased personnel costs but if they can drive sales then it is worth it. Employees can be a hit or miss.
"We expect wheat prices to remain stable in US dollar terms, at least for the first half of the year. Exchange rate impact is the greatest unknown: will the Kenyan and Ugandan shilling continue to weaken against the US dollar?"
Good news re: wheat prices but the KES & UGX will likely weaken. I hope they can pass on the exchange losses to consumers.
"Ennsvalley... Our planned investment in increased production capacity, the introduction of products targeted at a wider consumer base, and an increased marketing spend represent an exciting growth opportunity. We will also look at the opportunity to expand our bakery footprint outside of Kenya."
So much potential in selling 'healthy' breads to the middle-class in Kenya. They need to reduce waste & lethargy at the stores/outlets.
"the Group is well positioned to sustain and improve on its operating results"

"our bottom line financial performance will be impacted by the significant capital and operating expenditure required over the next few years to implement our ambitious growth strategy."
for the expansion but that cashflow and profits will be affected

Shareholding of Unga is quite tight. 70.39% owned by 10 shareholders.
Victus/Ndegwas = 50.93%
Broadway Bakery [a competitor in milling and bread] owns 0.58% and growing. They should merge and create a great vertically integrated firm from grain imports to retail sales.

I am glad they have recognized the lack of sales/growth in Amana in the early stages AND have acknowledged it. I think Amana will be a 'bolt-on' (not core) business for Unga. Amana is geared towards a demographic that constitutes less than 5% of Kenyans. I expect 2016's sales to be better for Amana.

Bullpak (proceeds from the sale) was a one-time gain. Nothing more to be had there.

Ennvalley - It needs a lot of work. Very low profit for the price Unga paid (high PER) but the profit growth can soar if Unga can tweak the stores, reduce waste, reduce cost of inputs, reduce pilferage, etc. This is a multi-year project. Expect Unga to invest additional cash into Ennsvalley.

The Ndegwas don't run any of their businesses but hire managers. They inherited the biasharas from their mzee who had access to cheap loans, forex & government machinery.

Seaboard owns 35% of Unga Holdings (the main subsidiary of Unga Group) & has seconded Nick Hutchinson (a Brit) as MD.
Alan McKittrik heads NAS.
Ennsvalley is run by an Austrian/German.
John Gachora & Alan Dodd (executive directors) head NIC.

Are you sure! Are you talking of blood or Naturalisation?