• Board approved implementation of various plant upgrades in the coming year to the Aspindale plant under the Stockfeeds division

• The Group approved the acquisition of an additional cereal manufacturing equipment at a cost of US$4 million

• National Foods remodelled the Maize unit business model

Harare - Diversified agro-industrial concern, National Foods Holdings Limited has commended the more stable environment for allowing them to increase focus on enhancing their product portfolio and optimising the business models in respective units.

In the past years, owing to the inflationary environment, preserving value on the statement of financial position has been the Group’s main focus.

In a statement accompanying National Foods financial results for the year ended 30 June, 2021, chairperson, Todd Moyo said this change in focus will be good for the consumer.

During the year, the Group managed to push initiatives to enhance some of their products and also optimise business models. Initiatives were implemented in the Stockfeeds, Snacks and Treats, Cereal and Maize division.

In the Group’s Stockfeeds division, the board approved the implementation of various plant upgrades in the coming year to the Aspindale plant as part of a 3 year phased upgrade which will significantly modernise the existing plant which was installed in the early 1990’s.

Under the Snacks and Treats business unit, National Foods continue to launch new products across the portfolio to broaden and enhance the offering.

“Additional manufacturing equipment for the Snacks unit has been ordered and will be installed early in the coming financial year,” Moyo said.

The Cereal division saw an approval of the acquisition of an additional cereal manufacturing equipment at a cost of US$4 million which will allow the Group to expand its repertoire of breakfast cereals and extruded products.

Moyo added that the investment is set to avail an exciting range of affordable and nutritious cereals to the market. It is anticipated that the launch of these products will occur progressively from mid-2022.

As part of optimising its business models, the Group remodelled the Maize unit business model to ensure that the unit continues to make a sustainable contribution to the Group following a significant recovery in the maize harvest this year which is however expected to impact demand for maize meal as consumers utilise their own harvested maize.

Meanwhile, National Foods recorded a 15% volume growth to 525,000 tons in the reviewed period compared to the same period last year.

In inflation adjusted terms, revenue increased by 26% to ZW$33.17 billion from ZW$26.43 billion in 2020 driven by volume growth as well as the impact of inflation.

Profit for the year declined by 97% to ZW$72.42 million from a prior year profit of ZW$ 2.19 billion owing to the performance of the Maize unit, as well as significant increases in operating expenditure and interest costs.

Equity Axis News