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HARARE – Listed agri-industrial concern, National Foods Holdings Limited’s revenue for the six months to December 30, 2017 slumped 10 percent to $147 million compared to $164 million achieved in the same period in the prior year on subdued volumes.
Group chairman Todd Moyo said the decline was also due to third party products which were traded in the previous financial year.
“Ignoring these products, revenue decreased by 4, 6 percent on a like-for-like basis driven mainly by maize and stockfeed,” he said.
Profit before tax increased 41 percent to $11, 9 million compared to $8, 4 million in the comparable prior year period driven by recovery in margins in the maize division, rice trading, good results from Pure Oil and a significant reduction in operational expenditure on the back of the takeover of the former depots by Gain Cash and Carry.
Total comprehensive income for the period under review jumped 50 percent to $9 million.
At 262 000 metric tonnes, total volumes were 10 percent below same period last year due to third party products that were traded through the former depot network last year.
The products are no longer traded by National Foods, therefore on a like-for-like basis, volume decline was 7, 3 percent represented mainly by stock-feed where volumes were 28 percent lower and a 17 percent decline in maize volumes.
The stockfeed division was also affected by the avian influenza outbreak which compromised the availability of day old chicks.
Natfoods declared a 6, 2 cents dividend per share.
Online Reporter