The bakery business was negatively impacted by credit challenges facing the retail sector resulting in an exit from most Nakumatt stores where it had bakery implants and counters. As a consequence, the
business embarked on a strategy to grow volumes and revenue through a direct distribution channel. In spite of this, the significantly reduced operations resulted in a goodwill impairment of Shs 151 million.

The Board nevertheless remains committed to its pursuit of value-added opportunities in the bakery sector,
and has reached an agreement with the minority shareholders to purchase the entire 48% non-controlling
interest (NCI) in Ennsvalley Bakery Limited. The agreed consideration resulted in a gain of Shs 153m. The
goodwill impairment was booked in the Statement of profit or loss while the gain on acquisition of NCI was
recognised directly in retained earnings within shareholders equity.

... the Company launched new Famila® packs and
smaller bales aimed at increasing off-take within the general trade.


....The Group commissioned a state-of-the-art fish feed plant and commenced production under the Fugo®
Fish Feed brand. This was achieved through partnership with a number of public and private entities under
the FoodTech Africa consortium to assist in the development of the aquaculture market in the region.



....Grain storage capacity was significantly increased following successful rehabilitation of the Commercial
Street silos and commissioning of new silos in Eldoret. A new grain receiving yard at Commercial Street is now in use. A new wheat mill project is on course for commissioning in Eldoret towards the end of the current financial year.

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