INNSCOR Africa Limited has recorded a 20,2% increase in revenue in the six months ended December 31, 2023 compared to the same period in the prior year, driven by improved capacity utilisation in the group’s core manufacturing entities.
“The group recorded revenue of US$480 million for the six-month period under review, representing a 20,2% growth over the comparative period,” the group said in its financial results for the period under review.
“Revenue growth was underpinned by improved capacity utilisation across the group’s core manufacturing entities, supported by the introduction of new product categories, category extensions, route-to-market optimisation and an acute focus on pricing strategy to ensure affordability and convenience to the consumer.”
In the reviewed period, the group recorded pleasing volume growth across most of its business units compared to the prior year, driven by a sustained recovery across the Mill-Bake value-chain, supported by firm demand in the protein, beverage, and light manufacturing segments, which all benefited from investment activity targeted at capacity building, product extensions and venturing into new categories.
“The bakery division recorded volume growth of 23,3% over the comparative period on account of consistent wheat pricing and innovative route-to-market initiatives, which saw the scaling up of country-wide express shops during the period under review, coupled with continued investment to replace the existing bread distribution fleet,” the company said.
The group said National Foods registered an aggregate volume growth of 3,4% over the comparative period, driven by a recovery in flour volumes and continued momentum in the stockfeeds business.
Flour volumes increased 5% over the comparative period on the back of improved demand in the baker’s flour category, enhanced by pricing stability in the wheat-to-bread value-chain.
Stockfeed business unit registered excellent results for the period under review, with volumes growing by 14% over the comparative period.
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The snacks business operated at capacity for the period, delivering a pleasing 31% volume growth over the comparative period.
The period under review was characterised by challenging and complex macro-economic issues.
“The operating environment remained challenging and complex for much of the period under review, notwithstanding the positive policy announcements regarding extending the multi-currency system until 2030, and ongoing efforts to enhance the monetary policy frameworks. The economy still faces acute liquidity constraints, local currency volatility, and inflationary pressures, which were especially prevalent toward the latter part of the six-month period ending 31 December 2023,” the group said.
In the review period, the group commissioned the pasta plant and is working towards the construction of the new biscuit plant.
“Work on the construction of the new pasta and biscuit plants continued during the period. The pasta plant was commissioned at the end of February 2024, and is the first large-scale pasta plant to have been constructed in Zimbabwe. The new biscuit line is expected to be commissioned in March 2024,” it said.
Following the recently announced policy measures targeting amendments to Value added tax regulations, the group is putting concerted efforts to maintain affordable prices of products.
“Our management teams are focusing heavily on unlocking cost savings in both the bills of materials and operating cost lines, with the objective of ensuring that product pricing remains both affordable and convenient to the consumer, and ensuring volume momentum is maintained.”
