High volumes spur Innscor

up from US2,61c a year earlier, Innscor said in a statement.
Turnover increased by 25 percent to US$319,5 million and net earnings expanded by 43 percent to US$27,5 million from the 2010 figure.

Cash generation remained strong with 70,5 percent of earning before interests, taxation, depreciation and amortisation converted into cash, despite the significant growth of the debtors book at TV Sales & Home which grew by approximately US$4,2 million.
The balance sheet remained clean while net gearing (overall indebtedness) improved to 8,5 percent from 21 percent from the previous comparable period.
An interim dividend of US0,75c per share was declared. Innscor, one of most capitalised companies on the Zimbabwe Stock Exchange, is into manufacturing, fast moving consumer goods, retail, tourism and fast foods within the region. It owns 79 percent equity in Colcom and 37 percent in National Foods. Both companies are listed on the ZSE.

Innscor also has a 49 percent stake in poultry producer Irvine’s.
“I would say these are very good results,” said a fund manager with Imara. Apart from Spar all the other business units are performing very well and the prospects going forward look very good.”

In the bakeries division, volumes rose by 60 percent on improved capacity. A new plant was commissioned in Harare during the period under review and, together with the upgrading of the Bulawayo production line, bread output improved to roughly 400 000 loaves a day.
Another breadmaking line, which will ramp up output by an additional 100 000 loaves will be built in Bulawayo during the third quarter.

In the fast foods, regional customer count rose by 13 percent, five points ahead of new counters opened in Zimbabwe. There are 32 additional counters at various stages of development across the region.

The local Spar Corporate Retail operations revenue increased by 24 percent but recorded a loss before taxation of about US$1,4 million.
At Capri, new lines — among them microwaves, washing machines and dryers — were added to the overall sales offering. Soon, the company will install a new refrigeration plant, followed by installation of a new freezer line. Volumes at National Foods grew 18 percent to about 194 000 tonnes. Revenue expanded 24 percent to US$116 million and profit increased US$3,6 million, a 26 percent growth from a year earlier.

Cash generation at Colcom continued to be solid and this will allow continued expansion in all aspects of the business, ranging from pig production through to processing, sales and distribution.

“Of the utmost importance to the group’s businesses is the continued growth in earnings and the production of free cash flow from operating activities,” Innscor chairman Mr David Morgan said.