Innscor in volume growth amid constraints

In a trading update for the third quarter that ended March 31, 2023, the diversified group said it operated under turbulent economic conditions as the market experienced significant inflationary pressure, currency instability and constrained local and foreign currency liquidity.

The Victoria Falls Stock Exchange-listed group said it resulted in weakening disposable income within the consumer market.

“In addition, a marked loss of business sentiment was impacted further by uncertainty across the international financial and political landscape.

“While consumer demand remained relatively buoyant across the informal trade, the formal market continued to face a crowding-out effect arising from policy-induced pricing distortions and resultant arbitrage evident across the formal trade.

“These effects were further aggravated by a hostile, uncertain, and ambiguous taxation system severely impacting formal business,” Innscor said.

The group, however, remains hopeful that the authorities will swiftly act to eradicate such market inefficiencies to stimulate aggregate demand and arrest the contraction of the formal market.

During the quarter under review, loaf volumes in the group’s bakery division continued to recover, however, on a cumulative nine-month basis, volumes closed marginally behind the comparative period, driven mainly by the international wheat pricing dynamics experienced during the first quarter.

“The operation’s new world-class production line in Bulawayo is expected to reach final commissioning imminently,” Innscor said.

The Colcom division, comprising Triple C Pigs and Colcom Foods, continued registering solid volume growth, mainly driven by the fresh pork category, which delivered an increase of nine percent over the comparative nine-month period.

Pig production continued to improve, with overall supply registering a three percent growth over the comparative nine-month period.

“Colcom Foods continues its investment drive to upgrade and modernise its factory operations at the Coventry Road site in Harare, while investment to further expand upstream piggery operations is also underway.

“The new feed mill at Triple C Pigs will be commissioned in the next quarter,” Innscor said.

At Irvine’s, cumulative nine-month volumes for the table egg and day-old-chick categories closed 18 percent and seven percent, respectively, ahead of the comparative nine-month period.