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Unga HY 2016-2017 over 59% drop in profits
Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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Lower 1H 2016/17 (vs 2015-16) profits.   Huge drop in Operating Profit from 492mn to 173mn. The increase in maize prices and reduced volumes has severely affected Unga's maize and animal feeds. Nakumatt's problems have seeped through with late payments. Ennsvalley store closings and late payments have hurt the business. 2H expected to be better. I am disappointed but remain confident that easing of the drought, maize imports and new projects will benefit Unga going forward. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/14/2011 Posts: 834 Location: nairobi
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VituVingiSana wrote:Lower 1H 2016/17 (vs 2015-16) profits. Huge drop in Operating Profit from 492mn to 173mn. The increase in maize prices and reduced volumes has severely affected Unga's maize and animal feeds. Nakumatt's problems have seeped through with late payments. Ennsvalley store closings and late payments have hurt the business. 2H expected to be better. I am disappointed but remain confident that easing of the drought, maize imports and new projects will benefit Unga going forward. Price should drop to 15 going by these results
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Full results link https://view.publitas.co...ing-announcement/page/1
Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Forgive my ignorance..what does the depreciation of the KES and UGX got to do with profit?Does the Co. have a forex loan or do they import inputs?
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Rank: Veteran Joined: 2/26/2015 Posts: 1,147
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Charts don't lie. check prior analysis here before the" news". I think the time has come for us to combine both tech analysis and fundamentals. best wishes It's not over until I winskype id: karasinga. email: kkarasinga@gmail.com
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Member Joined: 1/3/2014 Posts: 257
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obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit Help me understand what you mean. The way I read this I see no need for spell check. They expect PBT for th ecurrent financial year which ends in June 2017 will be at least 25% lower than the previous year ending June 2016. To me it makes sense...what am I missing?
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit You are the one who is slow  Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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sparkly wrote:obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit You are the one who is slow Hehe
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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snipermnoma wrote:obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit Help me understand what you mean. The way I read this I see no need for spell check. They expect PBT for th ecurrent financial year which ends in June 2017 will be at least 25% lower than the previous year ending June 2016. To me it makes sense...what am I missing? Gai. Pole
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit Unlike some bandia firms, Unga is telling shareholders that it will have a poor year 4 months before the year end. Bandia firms tell you that just before year end results are released. I appreciate the honesty. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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Chaka wrote:Forgive my ignorance..what does the depreciation of the KES and UGX got to do with profit?Does the Co. have a forex loan or do they import inputs? Yes. Wheat is imported. The new wheat mill was also imported using forex loans. The silos installed in Eldoret were also imported. The refurbishment of silos in Nairobi use imported materials. UGX has depreciated vs KES. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Absolutely! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: New-farer Joined: 5/19/2014 Posts: 68 Location: Migori
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obiero wrote:sparkly wrote:obiero wrote:Unga Limited has already reached June 2017 as per their profit warning.. If a company cannot afford to spellcheck then can we really expect a profit You are the one who is slow Hehe English is a fifth language for some.  Learning to sit on my hands
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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difficult to understand the charts! Towards the goal of financial freedom
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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Some of the raw materials could be sourced locally.This will help bring down operation cost. I hope that seaboard corporation does not wish the situation to remain like this just because they benefit from supply of some of the raw materials. Operation costs consumed 98% of the hy earnings i.e out of the total hy income of kshs 10,295,142000 operation costs consumed kshs 10,073,920.This left a profit margin of 1%.This must improve going forward for the company to be healthy. Towards the goal of financial freedom
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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Ebenyo wrote:Some of the raw materials could be sourced
locally.This will help bring down operation cost.
I hope that seaboard corporation does not wish
the situation to remain like this just because they
benefit from supply of some of the raw materials.
Operation costs consumed 98% of the hy earnings
i.e out of the total hy income of kshs 10,295,142000 operation costs consumed kshs 10,073,920.This left a profit margin of 1%.This must improve going forward for the company to be healthy.
Wheat - Very little is grown locally vs (growing) demand. Plus local wheat tends to be pricier than imports. Maize - You know the story. Local production < Demand Soybeans - Same as wheat. Most local soybeans are of poor quality. Cheaper to import from India. Seaboard supplies raw materials but Unga says they get a good deal coz of Seaboard's buying power as well as good credit terms. Yes, those margins are low but there isn't much pricing power for a politically sensitive FMCG. 2016-17 will be awful with the drought, elections, high interest costs and broke retailers e.g. Nakumatt, Uchumi, etc. Ennsvalley has closed stores (in Nakumatt) and there may be write-offs of fixtures & equipment plus costs of layoffs. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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VituVingiSana wrote:Ebenyo wrote:Some of the raw materials could be sourced
locally.This will help bring down operation cost.
I hope that seaboard corporation does not wish
the situation to remain like this just because they
benefit from supply of some of the raw materials.
Operation costs consumed 98% of the hy earnings
i.e out of the total hy income of kshs 10,295,142000 operation costs consumed kshs 10,073,920.This left a profit margin of 1%.This must improve going forward for the company to be healthy.
Wheat - Very little is grown locally vs (growing) demand. Plus local wheat tends to be pricier than imports. Maize - You know the story. Local production < Demand Soybeans - Same as wheat. Most local soybeans are of poor quality. Cheaper to import from India. Seaboard supplies raw materials but Unga says they get a good deal coz of Seaboard's buying power as well as good credit terms. Yes, those margins are low but there isn't much pricing power for a politically sensitive FMCG. 2016-17 will be awful with the drought, elections, high interest costs and broke retailers e.g. Nakumatt, Uchumi, etc. Ennsvalley has closed stores (in Nakumatt) and there may be write-offs of fixtures & equipment plus costs of layoffs. @vvs @guru used to worship this share
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:VituVingiSana wrote:Ebenyo wrote:Some of the raw materials could be sourced
locally.This will help bring down operation cost.
I hope that seaboard corporation does not wish
the situation to remain like this just because they
benefit from supply of some of the raw materials.
Operation costs consumed 98% of the hy earnings
i.e out of the total hy income of kshs 10,295,142000 operation costs consumed kshs 10,073,920.This left a profit margin of 1%.This must improve going forward for the company to be healthy.
Wheat - Very little is grown locally vs (growing) demand. Plus local wheat tends to be pricier than imports. Maize - You know the story. Local production < Demand Soybeans - Same as wheat. Most local soybeans are of poor quality. Cheaper to import from India. Seaboard supplies raw materials but Unga says they get a good deal coz of Seaboard's buying power as well as good credit terms. Yes, those margins are low but there isn't much pricing power for a politically sensitive FMCG. 2016-17 will be awful with the drought, elections, high interest costs and broke retailers e.g. Nakumatt, Uchumi, etc. Ennsvalley has closed stores (in Nakumatt) and there may be write-offs of fixtures & equipment plus costs of layoffs. @vvs @guru used to worship this share "worship" At least they had a starting point of analysing stocks. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Unga HY 2016-2017 over 59% drop in profits
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