Harare – National Foods Limited, one of the largest manufacturers and marketers of food products in Zimbabwe and the SADC region said that its volumes increased by 12.5% for the year ended 30 June 2019 to 611 000 metric tonnes(MT) versus the same period last year.
In statement accompanying the financials, Group Chairperson Todd Moyo said this was driven by an ‘excellent’ performance by the Maize Division where volumes increased by 60% to 196 000MT as well as the Stock Feed Division where volumes increased by 42% to 18 000MT as the market recovered from influenza.
“Both of these outcomes were partly influenced by the relative affordability of maize which Government continued to sell at subsidised pricing,” he said.
“These gains were offset by the performance of the Flour Division where volumes reduced by 18% to 249 000MT due to constrained raw material availability which resulted in shortages of flour and bread in the market.”
The Group’s revenue in the period under review increased by 90% to ZWL$566 million compared to ZWL$298 million in the prior year in part due to the volume increase but largely caused by inflationary driven price increases.
Mr Moyo said that profitability of all divisions exceeded inflation with the exception of MCG and Pure Oil.
“It was particularly pleasing to see a good performance from the Snacks and Treats division and we expect to see the relative contribution of this division steadily increasing in future,” Mr Moyo said.
Mr Moyo said the logistics segment, National Foods Logistics which was created in the second half of the previous financial year and is responsible for the distribution of the Group’s products to the market, now comprises 42 trucks, of which 19 were acquired during the year under review.
“The fleet moved 31% of the Group’s volumes during the year,” he said.
“The objective of improving distribution efficiencies is steadily being achieved albeit that progress was slowed by the need to deal with the numerous day to day operational challenges.”
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.