Innscor earnings decline

operations.
Revenue for the period was up 6 percent to US$337,8 million from US$319,5 million in the previous comparable period, Innscor said in a statement.

Basic earnings per share dropped from US4,15c to US3,70c. The Zimbabwe Stock Exchange-listed group declared an interim dividend of US0,8c per share.

Volumes in the bakery operations rose by 30 percent as the company recently commissioned two more lines with a combined capacity of 160 000 loaves a day.

This brings the total installed capacity to 560 000 loaves a day. The company said it planned to install two more bread lines next year with daily capacity of 80 000 loaves each.

Its local fast foods business grew by 5 percent after a slow start. Its store network expanded as five additional counters were opened in Harare and another two in Zvishavane. Innscor’s fast food outlets include Chicken Inn, Steers and Nando’s’

The group plans to open more counters in Harare, Chegutu, Chivhu, Kwekwe and Masvingo. These will include a new fish concept operating under the Fish Inn brand.

In the region, fast foods operations grew by 3 percent. Eight outlets were opened in Kenya and two in Zambia. Under the franchised operations, one outlet was opened in Swaziland and another in Lesotho.

The group is now operating 208 stores in the region and 18 additional stores are planned in the second half of the year. At Irvine’s, “factory efficiencies” continued to improve. Revenues were boosted by a 10 percent growth in volumes of day-old chicks.

In the milling business, volumes rose 24 percent to 241 000 tonnes. The increase in volumes, combined with improved margins, better cost control and profits from the disposal of non-core property and a plant resulted in “significantly” improved profits.

Overall volume growth at Colcom grew by 25 percent, but this was “high-volume and low-margin product”.

Equipment breakdowns also had a negative impact on the performance, affecting production in the latter part of the period.

Revenue was lost at a critical stage of the operation’s traditional trade cycle. Volumes at TV Sales and Home were relatively similar to those recorded a year ago. But a higher mix of furniture sales resulted in “reasonable” revenue growth.

Towards the end of the first half, four stores were opened in Harare and three in Karoi, Hwange and Marondera. Volumes at Capri grew by 42 percent.
A new refrigeration plant is scheduled for commissioning before the end of the second half.

Going forward, Innscor said it would pursue expansion projects. The group said it was “confident that this will result in continued growth and sustainable, long-term profitability”.