FOOD producer, National Foods Holdings Limited, will next year focus on the group’s recently introduced categories of cereals, biscuits and pasta as the consumer staples firm targets growth.
The focus comes after National Foods last month announced that it would delist from the Victoria Falls Stock Exchange to increase its flexibility to streamline its operations and concentrate on long-term strategic objectives.
Typically, National Foods aims to at least put back US$10 million of its earnings into the business as capex in any given financial year.
In its annual report for the period ended June 30, 2024, National Foods chairperson Edwin Manikai said the group had produced a pleasing set of results in a highly complex and challenging operating environment.
“In particular, the more established units have performed solidly. Focus in the coming year will be on the group’s recently introduced categories (cereals, biscuits and pasta) in particular, ensuring that targeted volume ambitions are achieved through offering products which are both relevant and appealing to consumers,” he said.
“The increase in operating costs which occurred in the financial year under review is concerning and management will continue to drive cost and efficiency savings to maintain operating margins, avoiding price increases wherever possible.”
During the period under review, the group invested in advanced equipment and established its own manufacturing facilities for high-demand products.
“This includes the commissioning of a state-of-the-art flour mill in Bulawayo, plus an upgrade of our innovative Cereals plant,” National Foods said.
- Zanu PF youths pelted for hijacking music show
- Mnangagwa defends Chinamasa appointment
- Mnangagwa defends Chinamasa appointment
- Pension funds generate US$29 million
Keep Reading
“We are also excited to have recently commissioned a state-of-the-art pasta plant, the first large scale plant in Zimbabwe. Finally, 2024 saw the commissioning of a new biscuit line, which will mean we can extend our repertoire of products.”
The group’s new biscuit line can produce a wide range of biscuits and was commissioned in August 2024.
Its new pasta line, commissioned in February 2024, will result in the localisation of the production of pasta, a product that had previously been imported.
“The investment should be complementary to the strong recovery in local wheat production and means that the country can potentially save substantial foreign currency by value-adding flour from locally grown wheat,” Manikai said.
“The new, locally produced product is being marketed under the ‘Better Buy’ and recently launched ‘Primo’ brands and initial market response to the quality of the product has been extremely positive.”
Under its cereals division, this continues to grow on the back of the group’s strategy to offer a full range of breakfast cereals to consumers.
Some of the new products introduced under this portfolio are making some in-roads in regional markets, albeit at low volumes.
During the period under review, the group’s volumes rose, leading to its overall revenue rising 5% to US$359,36 million from the 2023 comparative.
Revenue growth and a reduction in net interest costs by US$3,21 million propelled the group to a profit after tax of US$13,75 million.
In the 2023 comparative, profit after tax was US$7,52 million.
