@Vitu, check header. It's FY 2015-16.

I am looking ahead. The results [as you know & thanks for posting] for 2015-16 have been released. So what now for 2016-17?

At last year's AGM they banged on about Ennsvalley and how it was the best thing since sliced bread(!) as a justification for the purchase of this company from the Ndegwa's, so I'll be interested in seeing it's contribution to revenue and profit once they publish their full report. Pity that they haven't published the notice (or a full report) of these results on their website at the time of this posting - an indication of their 'efficiency'?

Last year's Annual Report mentioned the availability of their Amana brand of pulses - my own observation in the supermarkets in the area that I live and shop, is that the product is either not stocked or when it is, it's crowded out by in-house store brands.

Like @VVS, I'm not sure what this investment in 'brand equity' entails, as their company name 'Unga' and flagship product 'Jogoo' are in Kenya almost generic names for maize meal - if you go to a kiosk and ask for 'Jogoo' you'll be offered maize meal (not soap, cooking oil, razor blades or petroleum jelly) even if it's of a different brand...

In my view, for a company that generates close to Kshs. 20 billion in annual turnover, with good management, their is huge room for improvement in their operating profit - unfortunately, I don't have access to the results of competing companies to prove this point.

'Small' investors will be disappointed at the dividend payout policy (if it exists) of this company...

@VVS - Unga as a company, is over 100 years old in Kenya so the story of expanding their portfolio of brands and distribution reach sounds rather dated! My yardstick for dividends is whether the funds are better off in the company or in the pocket of the investor - probably the same thinking that informed Safaricom's special dividend. For as long as I've held this stock (about a decade), the directors retain the bulk of the profits in the business for 'investment'. My fear is that they really don't have a solid strategic plan (I've not seen one articulated) for these funds and that they will get tempted to 'buy' another Ennsvalley - mind you this investment (or anything like it) was probably not even on their radar five to six years ago! This is a mature company in a mature industry (and the barriers to entry are low) - it would need a sea change in their thinking and innovation to justify the level of retained profits. Probably a reason why they're ceding market share to upstarts like Capwell (established 1999) and supermarket brands (which are a very recent phenomenon in our retail economy) is their slow response to changing market dynamics.

As you say most competitors are family-owned businesses, which rather than die off, may even get listed (like Flame Tree), OR the 2nd and 3rd generations take them up to the next level in terms of 'brand portfolio expansion and distribution reach'.

My thinking is that they should now consider a glide path whereby they completely outsource milling of human foods (some of their product is currently milled by Rafiki Millers), stocking, packing and distribution of the finished product (under proper supervision and controls to ensure quality is maintained), and invest heavily in advertising and marketing the brands (brand equity?) throughout the region, while exploring new products and opportunities (did you know that Kenya has the 5th highest population of camels in Africa and along with Somalia and Ethiopia are among the leading exporters of these animals to the Middle East? Or that 5 million head of livestock are exported annually from Greater Somalia to the Middle East?). Food for thought....