daniel chigunwe
Business Writer
Listed diversified firm, Innscor, has signed off on US$70mln worth of short-term investment initiatives covering ongoing business optimisation and expansion within existing business units, to be staggered over the current financial year.
The investments are meant to fund the company’s operations in the current 2022 financial year (FY22) as they are to smoothen out operations.
All things held equal, analysts are of the view that sales volumes for Innscor will continue firming despite short term instability in the maize meal segments under National Foods.
“Despite the uncertain outlook and the increasingly complex trading environment, the group remains focused on negating these impacts by driving volumes, ensuring pricing remains competitive, closely managing operating expenditure, and managing working capital positions in the most effective and efficient manner,” reads the trading update.
Several expansion projects are currently underway at the Harare and Bulawayo production facilities aimed at improving capacity and capability.
But sustained inflation continues to pose restrained consumer spending power.
Like any other businesses, the group was not spared from the impact of Russia and Ukraine as resultant implications felt across international commodity markets and inbound supply chains.
“Notwithstanding the challenging market dynamics, the group delivered pleasing volume growth across all core manufacturing business units, underpinned by strong consumer demand in the informal trading channels and supported by diversified product portfolios and the recent investments into capacity expansion and manufacturing enhancements,” Innscor Africa said in a trading update.
Bongani Ndlovu