Innscor coy on full-year financial outlook amid pandemic hit environment

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HARARE – Innscor Africa Limited (Innscor or the Group), gave a modesty full-year financial performance outlook for the period ending June 2021, reflecting the uncertainty brought about on business operations by the ongoing global coronavirus (COVID-19) pandemic.

This is despite the Group having achieved a stellar half-year performance underpinned by strong volumes growth across most product categories and a subsequent surge in revenue, which was up 774% to ZW$27.8 billion.

The modesty outlook reflects the impact the pandemic continues to have on business operations, albeit positivity stemming from the roll-out of vaccines and relaxation in lockdown restrictions.

Commenting on the impact of COVID-19 on business continuity and solvency plan following the release of the half-year financials ending 31 December 2021, the Group said that given the ongoing uncertainty around the impact and conclusion of COVID-19, it is not possible to assess, with absolute certainty, the full impact the pandemic will have on the Group’s financial performance for the year ending 30 June 2021.

“At present, the financial status of the Group remains healthy, and the impact of the COVID-19 pandemic has not created any issues from a solvency or liquidity perspective,” the Group said.

Outlining its growth strategy, the Group said that management will continue to adapt their operating models according to the current environment, and this includes balancing volume objectives with appropriate return levels, carefully managing the overhead cost profile whilst also ensuring balance sheet value remains protected.

“We will continue to work with our financial institution partners to optimise the quantum and cost of debt deployed across the Group to facilitate the necessary pipelines of inventory that are required to be in place, especially given current disruptions to the global supply chain.

“We are cognisant of the ever-changing needs of our customers and will continue striving to deliver affordable, quality FMCG products through the most convenient and efficient market channels,” the Group said.

Listed on the Zimbabwe Stock Exchange (ZSE), Innscor manufactures and markets fast-moving and durable consumer products in Zimbabwe and exports to international markets. The company is primarily involved in maize milling and the production of stock feeds, edible oils, baker’s fat and pork products; as well as poultry, table eggs and day-old chicks.

Its operations comprise National Foods Holding Limited, Colcom Holdings Limited, Irvine’s Zimbabwe (Private) Limited, Bakeries, Appliance Manufacturing, Natpak (Private) Limited, Profeeds (Private) Limited and Probrands (Private) Limited.

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