• Innscor recorded volume growth across most business units
  • Trading environment was characterised by increased levels of inflation and uncertainity
  • Innscor to continue reviewing its financing, capital investment and working capital models as part of its business continuity plans.

Harare – Notwithstanding the prevailing market uncertainties, Zimbabwe Stock Exchange-listed, Innscor Africa Limited continued to deliver positive volume growth across most of its business divisions for the first quarter ended 30 September 2021, supported by investment and business optimisation initiatives.

In a trading update, the Group said the trading environment during the quarter under review was characterised by increased levels of inflation and uncertainty and are hopeful that current market complexities will be eliminated.

“We remain hopeful that practical, progressive and consistent policies will be adopted to ensure that the recent economic gains made by the country can be sustained into the future and that current market complexities will be eliminated by the implementation of clear, and non-conflicting, laws and regulations,” the Group added.

During the quarter, Innscor’s National Foods division volumes closed 24% ahead of the comparative quarter following an encouraging recovery within the maize division, whilst recent investment into broadening the product offering and plant enhancements delivered incremental growth for the business.

The Bakery division posted a 32% increase in volumes over the comparative same quarter last year, with the Group commencing further investment into plant automation in its Harare operations, whilst a new state of the art bakery line for Bulawayo is planned for commissioning during 2022.

The Colcom division, registered a 25% overall volume increase over the comparative quarter, with the processed category, in particular, delivering volume growth of 44%.

At Irvine’s, volumes within the day-old-chick category closed the quarter under review 39% ahead of the same quarter last year, driven by the firm demand in the small-scale sector, whilst frozen poultry registered a volume growth of 8%.

Volume performance at Natpak remained firm, with a 13% increase in aggregate volumes recorded over the comparative quarter.

“Following the successful commissioning of additional production capacity and capabilities during the final quarter of F2021, the Rigids division delivered strong volume growth of 74% over the comparative quarter, whilst good growth was also recorded in the Flexibles division. Marginal volume improvements were registered in the Sacks and Corrugated divisions,” the Group said.

The Prodairy division continued to record volume growth across all categories, with aggregate volumes being 46% above the comparative quarter.

Probottlers achieved an overall volume increase of 46% during the quarter with both the Cordial and CSD categories registering firm growth on the back of recent investments into additional filling capacity and capability.

However, a marginal decline in volume was recorded in the Associated Meat Packers division owing to the restricted trading hours in the quarter brought about by the COVID-19 lockdown measures.

Going forward, the Group will continue to review its financing, capital investment and working capital models as part of its business continuity plans.

“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 2022,” the Group said.

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