Chronicle Editor
INNSCOR Africa says it remains resilient in its efforts to sustain volume growth and maximise capacity utilisation, particularly across the group’s new investment areas.
The group, in its 3rd quarter ending March 31, 2023 trading update, said the short to medium-term outlook remains uncertain, especially in the formal trade, exacerbated by inflationary pressures and currency instability, which affect disposable incomes.
“The group remains focused on cost containment, ensuring efficient route-to-market strategies are employed and that our trading models are appropriately geared to suit difficult economic conditions,” the group said.
However, notwithstanding the challenging environment, volume performance for the group, on a cumulative nine-month basis, remains ahead of the comparative period. The protein, beverage and light manufacturing segments registered pleasing volume growth, whilst volumes for the mill-bake segment continued to recover into Q3.
During the quarter under review, loaf volumes within the bakery division continued to recover into Q3. However, on a cumulative nine-month basis, volumes closed marginally behind the comparative period, driven mainly by the international wheat pricing dynamics experienced during Q1.
“The operation’s new world-class production line in Bulawayo is expected to reach final commissioning imminently,” Innscor said.
At National Foods, volume performance, from a cumulative nine-month perspective, was five percent behind the comparative period.
The Colcom division, comprising Tripple C Pigs and Colcom Foods, continued registering solid volume growth, mainly driven by the fresh pork category, which delivered growth of nine percent over the comparative nine-month period. The company said pig production continues to improve, with overall pig supply registering a three percent growth over the comparative nine-month period.
“Colcom Foods continues its investment drive to upgrade and modernize its factory operations at the Coventry Road site in Harare, while investment to further expand upstream piggery operations is also underway.
“The new feed mill at Triple C Pigs will be commissioned in the next quarter,” Innscor said.
At Irvine’s, cumulative nine-month volumes for the table egg and day-old-chick categories closed 18 percent and 7 percent, respectively, ahead of the comparative nine-month period.
The frozen poultry category continued to operate near capacity, and volumes remained in line with the comparative nine-month period. Innscor said production at Irvine’s continues to be supported by targeted investment across its value-chain to expand operations and unlock operational efficiencies.
For the period under review, the group’s other units experienced volume growth and the group continued to make investments in their operations.
-BH24
Online Reporter