Online Reporter
Rutendo Nyeve, Business Reporter
LEADING manufacturer of consumer staple and durable goods, Innscor Africa Limited, has reported a revenue income exceeding US$535 million in the first-half of its financial year, marking a 12 percent increase compared to the same period last year.
This notable achievement, outlined in the company’s Group Financial Results presented by Non-Executive Chairman Mr Addington Chinake, was largely driven by substantial volume growth in the Mill-Bake, Beverage, and Light Manufacturing segments.
The company credits this upward trend to strategic pricing initiatives designed to maintain consumer price points, even in the face of regulatory changes such as VAT status adjustments and the implementation of the Special Surtax on Sugar Content (Sugar Tax) within the beverage industry.
“Despite the fluid trading environment, particularly in the first quarter of the period under review, the Group achieved pleasing volume growth across its core manufacturing operations. The Group recorded revenue of US$535 787 000 during the period under review, representing a 12 percent increase over the comparative six-month period,” said Mr Chinake.
He said the Mill-Bake segment saw increased capacity utilisation, while the beverage and light manufacturing segments benefited from previous investments, contributing positively to overall volume performance.
The Protein segment also reported volume growth, albeit facing challenges in the pork category due to VAT status changes implemented in January 2024.
Mr Chinake said the company acknowledged the current prevailing stability of the local currency.
“The second-half of the current six-month period under review has seen a period of relative stability from a local currency and inflationary pressure perspective, although local and foreign currency market liquidity has remained severely constrained.
“Overall business sentiment, however, remains fragile, with the cumulative effects of prolonged market volatility and constrained liquidity continuing to affect the general trading environment, and overall confidence,” said Mr Chinake.
He said the drought of 2023/24 also presented significant challenges, forcing Innscor to rely heavily on imports for its commodity requirements. Looking ahead, the company is optimistic about the current agricultural season and plans to increase its reliance on locally sourced raw materials.
“The prospects for the current season appear more positive than last, despite the late start to the rains, and in the year ahead, the Group is well positioned to secure a greater proportion of raw material requirements locally. The group’s contract farming initiative, ‘AGrowth’, remains a key focus toward contributing to the nation’s medium-term objective of achieving local food security, and building capacity in the local agricultural sector.
“This scheme continues to enable the sourcing of more locally-grown commodities for use by the Group’s manufacturing entities; 6 700 hectares are currently under contract for the 2024/25 summer season, with a similar hectarage planned for the upcoming 2025 winter wheat season.”
The company’s commitment to local sourcing is seen as a crucial step towards reducing reliance on imports and supporting the nation’s agricultural sector. — @nyeve14.
