- Cumulative 9 months volumes up 14%
- Maize volumes down 31%
- Other segments’ collective growth came in at 47%
Quarterly performance numbers released by Innscor shows that volumes growth at its associate National Foods slowed down in the third quarter period (Q3:21) which is a period between January and March 2021.
In a trading update, Innscor said National Foods’ cumulative sales volumes for the 9 months period to March 2021 were 14% ahead of the prior year. The outturn is however, significantly lower compared to a cumulative growth of 26% as at the end of the preceding quarter ending December 2020 (Q2:21).
The outturn, said Equity Axis’ analysts, reflects on 2 possibilities which include a possibility that the prior comparable quarter in 2020 registered an unusually strong volumes performance compared to the previous 2 quarters in the same year.
“It would therefore create a higher base upon which the current year’s volumes (Q3) are compared on a like for like basis and spontaneous increase the overall base for the cumulative 9 months period comparative” the analysts contended.
The other possibility which would give rise to this outcome is a very subdued quarterly performance for the current quarter (Q3:21) compared to the prior year, such that the overall cumulative will be weighed.
Innscor however reported Natfoods’ cumulative volumes performance as steady over the comparable period in 2020, despite the sharp decline from the half year position.
A major drag to Natfoods’ performance is the maize division which remains subdued due to inherent dynamics. The division, which is typically a major income contributor, remains depressed since the removal of subsidies and higher importations levels in the second half of 2020 (fiscal year).
For the 9 months period to March 2021, volumes were 31% below the prior comparable period in 2020. The loss in volumes is wider than the 23% decline recorded as at half year.
Innscor said the volumes performance has been impacted by substantial import volumes onto the local market as well as market adjustments following the removal of government’s subsidy program.
Other division within the operation however remained on a positive trajectory with a combined 47% volumes growth over the prior comparable period. Flour volumes for the 9 months were up 46%, with third quarter volumes also showing strong growth.
Stockfeeds volumes swelled 27% over the 9 months period while groceries volumes rose by 95% for the same period. Snacks and Treats volumes were 44% ahead of the comparative period.
EQUITY AXIS NEWS