Harare – Diversified industrial conglomerate Innscor Africa Limited posted $631.283 million in revenue for the year ended June 30, 2018 which compared to $580.303 million in the prior year, representing a 9 percent increase.
The Group said an improved performance was noted in the second half of the year, where revenue grew by 21 percent on the comparative period, a result driven by increased volumes across most categories and improved product mix.
“Second half revenues were also aided by improved day old chick supply and a small pricing increase awarded in the bread category in the final quarter of the year.
“The improved product mix, favourable raw materials position and continued tight control in operating costs resulted in operating profit growing by 18 percent over the comparative year to $77.162 million.”
Innscor said a final impairment of $2.042 million relating to feed destroyed at infected poultry sites at Irvine’s was processed, of which $1.170 million is reported within the financial loss of the year, this compares to the prior year financial loss which included an impairment charge of $7.284 million, relating to poultry livestock culled.
During the course of the year, the Group took on significant working capital positions related to key raw materials required for ongoing trading, this resulted in the net interest increasing by 48 percent over the comparative year.
“This higher net interest charge, was off-set by a favourable fair value adjustment on listed equities and livestock and an improved performance by the Group’s associate entities. Overall profit before tax before the year at $62.872 million was 51 percent above that recorded the prior year.
“Included in the prior year numbers are net results of $0.984 million of discontinued and discontinuing operations which relate to the Group’s interest in Spar Zambia Limited and The River Club in Zambia, both of which were disposed of during the 2017 financial year.”
In the period under review, overall headline earnings per share of 6.09 US cents were recorded for the year under review representing a growth of 28 percent on the comparative period.
The Group said cash flow was excellent and it generated $95.308 million from operating activities against $16.267 million in the comparative year.
Additionally, Innscor said capital expenditure, at $36.569 million included critical maintenance projects, as well as a number of capabilities and capacity enhancement projects across the Group.
Equity Axis News
