LISTED conglomerate Innscor Africa Limited (Innscor) recorded an inflation adjusted revenue of $66,9 billion for the year to June 30, 2021 up from $49,4 billion prior year on the back of volume growth across all businesses.
In a statement accompanying the group’s financial results for the period under review, Addington Chinake, Innscor’s chairperson, said profit after tax slowed down to $4,4 billion from $7,4 billion during the period under review.
“Revenue growth was achieved on the back of volume growth across all businesses as the introduction of new products, increased capacity utilisation in existing and new categories, access to a growing informal market and a market sensitive pricing strategy all aligned to provide a pleasing result,” he said.
Addington Chinake, the group’s chairman
“Inflation-induced distortions dissipated during the course of the year, and gross profit percentages were therefore lower in the current year as measured against the comparative year under the historical cost convention; this resulted in overall gross profit growth of 293 percent being lower than revenue growth (in historical terms),” he said.
Chinake said the group’s financial income continued to be dominated by exchange gains, whilst fair value adjustments on biological assets were impacted by the convergence of market and book values.
“Fair value adjustments on listed equities were lower by 85 percent against the comparative year, indicative of the extreme levels of inflation that occurred during the 2020 financial year; this contrasted against the much lower inflation levels experienced in the current year. This has the effect of constraining historical cost earnings per share growth,” he said.
The net interest charge for the year of $1,284 billion was a significant increase over the comparative year and was affected by higher local currency denominated loan values at higher interest rates.
The group’s equity-accounted earnings continued to contribute positively to the overall group result.…The group’s statement of financial position remained robust, with a strong asset base supported by fixed assets and inventory positions and minimal gearing at year-end.
The Group’s free cash generation was pleasing following strong operational cash flows during the latter part of the year, allowing for increased levels of expansion capital expenditure,” Chinake said.
The group declared a dividend of $290 cents per share up from 113,73 cents per share during the period under review. The total dividend consisted of an interim dividend of $117 cents per share and a final dividend of 180 cents per share and is payable by close of business October 15.
The group also declared a final dividend totalling $51 million to Innscor Africa Employee Share Trust (Private) Limited bringing the total dividend paid to the employee share trust to $82 million during the period under review.