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Oliver Kazunga Senior Business Reporter
INNSCOR’S fast foods division has embarked on a $1.5 million expansion project that involves the construction of new outlets in the southern region.The fast foods division has operations across major cities in the country such as Harare, Bulawayo, Gweru and Mvuma.
The expansion project will result in new outlets being built in Chiredzi, Gwanda, Masvingo, Hwange and Plumtree.
“We’ve started construction work in Gwanda and Chiredzi and the two projects will take eight months to complete. We’re opening new outlets in the southern region under our $1.5 million expansion project,” Warren Meares Innscor’s southern region managing director said.
“In Masvingo, we’re still looking for a good site but we hope construction will start in a month’s time.”
He said in the next financial year the project would be rolled out in Plumtree and Hwange.
The fast foods division boasts of more than 3,000 workers and the expansion of operations is likely to add about 100 jobs.
The giant conglomerate’s financial year which ended in June 2014 saw the group recording $1 billion revenue, which was 54 percent up from $656 million realised the previous year.
The group however said the performance of its units was below expectation despite the revenue being a record in Zimbabwe since dollarisation in 2009.
The group was facing a challenging trading environment for the greater part of the financial year and it reported that this was compounded by inefficient management structures in a number of its core businesses, in many cases gross profit margins were also reduced in an effort to stimulate revenues against a backdrop of reducing disposable incomes.
During the year, the group recorded an operating profit of $80.56 million compared to $67.4 million recorded the previous year and an after-tax profit of $78.8 million against $48.6 million in 2013.
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