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DIVERSIFIED Pan-African management holding company Innscor Africa Limited says the US$25 million fully automated Bulawayo-based flour mill is at an advanced stage of development and is expected to be commissioned in June this year.
On the other hand, work is still in progress in Harare for the new pasta and biscuit plants in Harare.
In a trading update for the quarter ended 31 March 2023, the Victoria Falls Stock Exchange-listed entity said despite the challenging business environment, it remains resilient in its efforts to sustain volume growth and maximising capacity utilisation, particularly across the new investment segments.
“The Bulawayo-based flour mill is in an advanced stage of development and is expected to be commissioned in June 2023, while work continues on the new pasta and biscuit plants in Harare, and it is expected that these plants will be commissioned in late 2023,” it said.
Innscor said it remains focused on cost containment, ensuring efficient route-to-market strategies are employed and that its trading models are appropriately geared to suit difficult economic conditions.
Commenting on sector performances, on the bakeries division, the firm said loaf volumes within the bakery unit continued to recover into the quarter under review.
“However, on a cumulative nine-month basis, volumes closed marginally behind the comparative period, driven mainly by the international wheat pricing dynamics experienced during Quarter One,” said the company.
“The operation’s new world-class production line in Bulawayo is expected to reach final commissioning imminently.”
At National Foods, volume performance, from a cumulative nine-month perspective, was five percent behind the comparative period.
The flour division recorded volumes 18 percent behind the comparative nine-month period, driven largely by the international wheat pricing dynamics seen in the first quarter.
This resulted in affordability challenges in the downstream bread category, it noted.
The group has said the entry of new players in the flour milling market heightened competition in the category.
However, the stock feed division had encouraging volume recovery in the last two quarters after a challenging first quarter. The division registered four percent volume growth over the comparative nine-month period.
Similarly, the maize division has seen firm volumes recorded in quarters two and three, and on a cumulative nine-month comparison, volumes remained at similar levels.
The snacks division continued on a strong volume trajectory, recording a 27 percent increase in volumes over the comparative nine months, mainly in the hard snacks category, while the “King” range continues to lead the market in the soft snacks category.
The firm said the Cereals, Culinary, and Baby division (“CCB”) delivered volume growth of 42 percent ahead of the comparative nine-month period.
Turning to the Buffalo Brewing Company (TBBC), which introduced its new sorghum beer offering under the iNyathi brand in December 2022, it said the market uptake has been pleasing during its first quarter of operation, and volume performance has met expectations. However, it gave no figures relating to performance.
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