Chronicle Editor
Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S largest milling company, National Foods Holdings Limited recorded a 15 percent increase in volumes to 525 000 tonnes for the year ended June 30, 2021.
In a statement accompanying financial results for the period under review, National Foods said the improved performance was achieved despite disappointing performance by the maize unit, whose volume declined by 32 percent.
“Volumes for the period increased by 15 percent to 525 000 tonnes compared to the prior period. “This was achieved in spite of the disappointing result from the maize unit, where volumes declined by 32 percent largely on the back of intense competition from imported maize meal and the discontinuation of the subsidy programme,” said the milling giant.
Excluding maize, the milling firm said the year-on-year volume growth across all categories was 48 percent.
This positive outcome was driven by improved consumer demand and a steadily improving market presence across the portfolio.
Revenue for the period increased to $28,07 billion, a 343 percent increase on the prior period on the back of the volume growth as well as the impact of inflation.
Profit before tax increased by only 82 percent to $3,42 billion.
“This was a muted performance relative to the rate of inflation and was largely caused by lower gross margins across the portfolio, the performance of the Maize unit, as well as significant increases in operating expenditure and interest costs,” said National Foods. – @okazunga
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