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Uchumi FY15 Loss of Ksh. 3.42 Bn
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VituVingiSana
#51 Posted : Thursday, January 07, 2016 9:58:46 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,350
Location: Nairobi
Cde Monomotapa wrote:
VituVingiSana wrote:
murchr wrote:
Those dollar loans they will milk them dry. What happened to EAPC's results? No Jubilee member advised them to take them. There's a mall glut in Nairobi. The kiosk mentality on full display on Thika road how do you expect close to 5 malls to thrive in one lower middle income neighborhood?

Kenyans love real estate, real estate, real estate. That's why it pisses me off when politicians and Kenyan complain about those who set up factories.

Those who set up factories aren't saints but they create REAL (& hopefully sustainable) jobs whereas those who just build malls, houses, exhibition halls create temporary construction jobs. Those who occupy these malls rely on consumers who may not have sustainable jobs.

It saddens me to see Kenyans importing COCONUT products. On a flower farm they told me they import coir since there is no large local producer yet I see coconut husks thrown away at the coast.

As @murchr says, loans have risks. Loans in FX have double the risk.


Now, how do you think KK will fare with that? FX losses or you're waiting for the profit warning? Laughing out loudly Laughing out loudly Spoofing KQ won't help, and watch out it might get nostalgic as follows;

Sleepless nights http://www.howwemadeitin...l-company-around/52754/ #SuicideWatch

Where's the article with the AKS take of that Uchumi move? Hmmm, yep. As long as he gets ad revenue
HERE Yes. Strategy - something you need to work on @vvs, a lawyer with business acumen is an asset! Laughing out loudly You should buy more KQ and help out the sellers exit! Laughing out loudly Laughing out loudly Laughing out loudly .


@cde - Pole sana, lakini clutching at straws are we?

1) KK takes risks with FX loans BUT there's a natural hedge coz fuel is repriced every month with the FX rate being adjusted in the formula. Uchumi cannot do that. As for KQ, the fools entered into currency hedges & lost. Again.

2) Ohana has paid off FX loans except those for inventory [see 1 above]. KQ is taking on more loans. In USD and in KES. Uchumi has taken on more loans too. Of course, lower oil prices have helped reduce the need for financing inventory.

3) Ohana has/had sleepless nights bringing KK back from the dead. In the meantime, Naikuni & Mbugua were sleeping peacefully while screwing shareholders. Not to mention free flights, 5-star hotels and kickbacks.

Bottomline: KK vs KQ vs Uchumi. My money is (literally) in KK but I try to help KQ & Uchumi by flying KQ and shopping Uchumi.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#52 Posted : Thursday, January 07, 2016 10:03:27 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,350
Location: Nairobi
Spikes wrote:
Cde Monomotapa wrote:
VituVingiSana wrote:
murchr wrote:
Those dollar loans they will milk them dry. What happened to EAPC's results? No Jubilee member advised them to take them. There's a mall glut in Nairobi. The kiosk mentality on full display on Thika road how do you expect close to 5 malls to thrive in one lower middle income neighborhood?

Kenyans love real estate, real estate, real estate. That's why it pisses me off when politicians and Kenyan complain about those who set up factories.

Those who set up factories aren't saints but they create REAL (& hopefully sustainable) jobs whereas those who just build malls, houses, exhibition halls create temporary construction jobs. Those who occupy these malls rely on consumers who may not have sustainable jobs.

It saddens me to see Kenyans importing COCONUT products. On a flower farm they told me they import coir since there is no large local producer yet I see coconut husks thrown away at the coast.

As @murchr says, loans have risks. Loans in FX have double the risk.


Now, how do you think KK will fare with that? FX losses or you're waiting for the profit warning? Laughing out loudly Laughing out loudly Spoofing KQ won't help, and watch out it might get nostalgic as follows;

Sleepless nights http://www.howwemadeitin...l-company-around/52754/ #SuicideWatch

Where's the article with the AKS take of that Uchumi move? HERE Yes. Strategy - something you need to work on @vvs, a lawyer with business acumen is an asset! Laughing out loudly



Absolutely inspired by David Ohana story of turnaround strategy. I hope everybody especially CEOs of struggling firms in Kenya have read this reality. Even at personal level you need to cut costs and maximise on the advantages to leapfrog out of poverty.

Applause Applause Applause
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#53 Posted : Thursday, January 07, 2016 10:37:32 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
Uchumi has put a freeze on opening new branches.Some of the upcoming malls where they were the anchor tenants they have relinquished the offer.
Good move to conserve cash,repay debts and ensure the existing branches are profitable and able to sustain their operational expenditure.
Nakumatt debt is now at sh.16bn and they are now looking for a strategic investor.
There is an oversupply of shopping malls and the existing supermaket branches most of them are not profitable putting a strain on the few that are profitable.
The kenyan middle class is over hyped.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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winmak
#54 Posted : Thursday, January 07, 2016 12:00:38 PM
Rank: Member

Joined: 12/1/2007
Posts: 539
Location: Nakuru
Is their a price uchumi pays for relinquishing anchor tenancy from the said malls?
For investors as a whole, returns decrease as motion increases ~ WB
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whiteowl
#55 Posted : Thursday, January 07, 2016 12:30:52 PM
Rank: Veteran

Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
Ericsson wrote:
Uchumi has put a freeze on opening new branches.Some of the upcoming malls where they were the anchor tenants they have relinquished the offer.
Good move to conserve cash,repay debts and ensure the existing branches are profitable and able to sustain their operational expenditure.
Nakumatt debt is now at sh.16bn and they are now looking for a strategic investor.
There is an oversupply of shopping malls and the existing supermaket branches most of them are not profitable putting a strain on the few that are profitable.
The kenyan middle class is over hyped.


This business of shopping for a "strategic partner" after loading up debt won't end well for the shareholders especially for the listed firms.
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Realtreaty
#56 Posted : Thursday, January 07, 2016 12:31:59 PM
Rank: Elder

Joined: 8/16/2011
Posts: 2,387
winmak wrote:
Is their a price uchumi pays for relinquishing anchor tenancy from the said malls?

Hehheheeeee.....Uchumi "Hyper" Ngong road is not a mall, actually it looks like cattle shed from inside. It can well be used by Mogotio Goat Auctioneers. It has very few customers. This is one reason I would say that one Hires a Muhindi contractor at his own risk. The Construction was wanting and fake for a Mall. Compare it to Junction Mall along the same Ngong road by Nakumatt.
Actually one who will buy this "Hyper" is just buying the land not the store as will require total rebuilding.
If I had money like Co-op Bank, I would buy it and construct a New "Nairobi Mall" of the century!!!
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Aguytrying
#57 Posted : Friday, January 08, 2016 11:15:14 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Realtreaty wrote:
winmak wrote:
Is their a price uchumi pays for relinquishing anchor tenancy from the said malls?

Hehheheeeee.....Uchumi "Hyper" Ngong road is not a mall, actually it looks like cattle shed from inside. It can well be used by Mogotio Goat Auctioneers. It has very few customers. This is one reason I would say that one Hires a Muhindi contractor at his own risk. The Construction was wanting and fake for a Mall. Compare it to Junction Mall along the same Ngong road by Nakumatt.
Actually one who will buy this "Hyper" is just buying the land not the store as will require total rebuilding.
If I had money like Co-op Bank, I would buy it and construct a New "Nairobi Mall" of the century!!!


Be fair. Uchumi hyper was constrcuted a long time ago, while Junction was constructed recently. at the time it was constructed hyper was the supermarket to shop up. now its outdated, but give credit where its due
The investor's chief problem - and even his worst enemy - is likely to be himself
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Ericsson
#58 Posted : Wednesday, February 17, 2016 1:00:02 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
GOK has informed that they will intervene in the $3.5mn dispute Uchumi Uganda faces from creditors and suppliers
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Pesa Nane
#59 Posted : Tuesday, March 22, 2016 2:52:23 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Quote:
PRESS RELEASE UCHUMI SUPERMARKETS LIMITED CLOSES BRANCHES IN RATIONALISATION PROCESS
Nairobi, Kenya, March 21st 2016…
Uchumi Supermarkets Limited has today announced the termination of operations in five (5) outlets within Kenya as part of its reorganization process. The closure of these branches which include Taj Mall, Embu, Eldoret Sugarland, Nakuru and Kisii will help reduce the retailer’s operational costs enabling it to concentrate its efforts on a leaner structure as dictated by the current business environment. Uchumi’s Chief Executive Officer, Dr. Julius Kipng’etich, said that Uchumi is well on track to recovery and that the move is expected to hasten the retail chain’s rise to sustainability. “Their closure will enable us channel our resources to fewer branches and optimize operations for maximum gain,” said Kipng’etich. The retail chain has adhered to all the required legal & statutory requirements in implementation of this decision. In the process, 253 positions will be rendered redundant
Pesa Nane plans to be shilingi when he grows up.
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watesh
#60 Posted : Thursday, April 07, 2016 9:04:10 AM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
Meanwhile in Uchumi, things are thick
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