daniel chigunwe
Enacy Mapakame
Diversified industrial conglomerate, Innscor Africa Limited, says its beverages light manufacturing division registered strong growth during the half year to December 31, 2022.
The company’s portfolio includes Prodairy, Mafuro Farming, Probottlers, The Buffalo Brewing Company (TBBC), Natpak, and a non-controlling interest in Probrands.
According to the group, Prodairy, in particular, registered a 32 percent increase in volume growth, driven by strong performance across its entire product range. The Revive dairy blend category has seen a remarkable 56 percent growth in volume, thanks to significant investment in production and the expansion of product formats to target a wider market segment. The Life branded butter and cream range also posted a 21 percent growth in volume.
Mafuro Farming, which produces raw milk, has seen an 18 percent increase in production and supply, on the back of its focus on increasing the milking herd and improving production efficiencies.
“The business is also commissioning a new state-of-the-art dairy operation in the Midlands, which is expected to become fully operational in the final quarter of the financial year,” said chairman Addington Chinake.
Probottlers, the company’s soft drink subsidiary, saw an overall volume increase of 14 percent on the back of investment to increase production capacity of its 500ml Fizzi line.
However, the business is facing challenges due to the critical shortage of sugar supplies, compounded by increased grey-market import pressure of finished products.
TBBC, its brewing arm, launched its sorghum beer product under the Nyathi brand in December 2022.
Said Chinake: “Market uptake has been encouraging, and volume performance to date has met expectation.
Natpak, which produces packaging products, has delivered stable volumes, with Rigids division posting a 9 percent growth thanks to increased production capacity and product range extension. The Flexibles division has also seen growth of 8 percent and investment to expand printing capacity is currently underway.
Chinake indicated the Corrugated and Sacks divisions have also registered positive volume growth, thanks to additional production capacity and manufacturing capabilities.
However, Probrands, which specialises in household and adjacent condiment products, has seen lower volume performance, but this is due to a deliberate refocusing on higher-margin specialised categories.
Innscor’s continued investment in its beverage and light manufacturing segment has contributed significantly to the company’s overall growth. With the opening of a new dairy operation and investment in packaging and brewing operations, the company is well-positioned to continue its growth trajectory in the coming years.
Bongani Ndlovu