Zimbabwe: Innscor Reports Strong Growth Across Manufacturing Divisions

29 April 2022

Innscor Africa reported volume growth across all core manufacturing business units in the third quarter ended March 31, 2022 despite challenges presented by resurgent inflationary pressures in the economy.

The company is also into agribusiness to ensure reliable supply of raw materials to its factories. It is involved in contract wheat farming. However, the slow onset of the rainfall season as well as fertiliser shortages affected farming activities.

"The erratic rainfall patterns have negatively impacted the prospects for the local agricultural season, and it now seems likely that the importation of maize and soya will be necessary during the course of the period ahead," Innscor said in a statement

Output in the bakery division continued to recover into the third quarter of 2022 and from a 9-month cumulative perspective, the volume was 23 percent ahead of the comparative period last year.

"Bread pricing remains a critical focus area in light of both local and international inflationary pressures; engagement continues with key stakeholders in ensuring that both consumer and producer pricing is balanced appropriately to allow for sustainable supply of product to the market," it said.

At National Foods, aggregate 9-month volume growth was 11 percent ahead of the comparative period. Volumes for the quarter were largely impacted by an expected decline in maize offtake following the excellent 2021-2022 harvest. Excluding Maize, volumes increased by 9 percent compared to last year

The Colcom division, comprising Triple C Pigs and Colcom Foods, continued to register pleasing volume growth through the third quarter, and from a cumulative nine-month perspective, volumes were 16 percent ahead of the comparative period, according to the group.

The processed pork category continues to deliver strong performance, with 9-month volume growth of 25 percent over the comparative period whilst improved market uptake in the pies category translated into volume growth of 34 percent over the same period.

At Irvine's, cumulative volumes for day-old chicks and frozen poultry categories closed 38 percent and 30 percent ahead of the comparative period, respectively. Table egg production continued to operate at full capacity, and volumes remained slightly ahead of the comparative nine-month period.

Volume performance at Associated Meat Packers continued to show good signs of recovery across the full protein range, with overall volume growth of 16 percent being recorded against the comparative 9-month period.

At Natpak, volume momentum was maintained into the third quarter, and on a cumulative basis for the period under review, aggregate volumes were 24 percent ahead of the comparative period last year.

Prodairy continued to record excellent volume growth through to the third quarter, with aggregate volumes being 34 percent ahead of the comparative nine-month period.

Probottlers delivered pleasing volume growth of 27 percent against the comparative nine-month period, driven primarily by the capacity expansion initiatives undertaken within the "CSD" category.

At Profeeds, stockfeed volumes closed 16 percent ahead of the comparative 9-month period, combined with a 30 percent improvement in day-old chick volumes over the same period.

Despite aggregate volume growth being muted on a 9-month basis, encouraging growth was registered at Probrands specialised product and condiment categories, closing 41 percent and 22 percent, respectively, ahead of the comparative 9-month period.

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