INNSCOR Africa (Innscor) has commenced further investment into automation at its Harare bakery unit, while a new state-of-the-art line is planned for commissioning next year at its Bulawayo unit.
In a trading update for the first quarter ended September 30, 2021, Innscor Africa group chief executive, Julian Schonken, said the group will continue with its expansion drive.
“Notwithstanding current market dynamics, the group continued to deliver positive volume growth across most categories, supported by recent investment and business optimisation initiatives,” he said.
For the period under review, the group’s bakery division registered a 32 percent increase in volumes over the comparative quarter.
Last month, the group reported that it was investing US$70 million across its business units in a bid to increase production capacity, improve efficiency and enhance product innovation, as it seeks entry into new products and categories.
During the quarter under review, Schonken said the period was characterised by increased levels of inflation and uncertainty.
“We remain hopeful that practical, progressive and consistent policies will be adopted to ensure that the recent economic gains made by the country can be sustained into the future and that current market complexities will be eliminated by the implementation of clear, and non-conflicting, laws and regulations,” he said.
Volumes at National Foods closed 24 percent ahead of the comparative quarter following encouraging recovery within the maize division, whilst recent investment into broadening the product offering and plant enhancements delivered incremental growth for the business.
The Colcom division registered a 25 percent overall volume increase over the comparative quarter, with the processed category, in particular, delivering a 44 percent volume growth.
At Irvine’s, volumes within the day-old-chick category closed 39 percent ahead of the comparative quarter, driven by firm demand in the small-scale sector, whilst frozen poultry registered a volume growth of eight percent over the same period.
Table egg volumes remained similar to the comparative quarter and capacity expansion initiatives are underway across all three core categories of the business.
Volumes at Associated Meat Packers were marginally lower than the comparative quarter, and this was primarily due to the restricted trading hours in the quarter brought about by Covid-19 lockdown measures.