LOCAL research firm says it expects Innscor Africa’s revenue to grow by 3,2 percent to US$829,60 million in the full year 2024, driven by enhanced production capacities and route-to-market initiatives.
In the fiscal year to June 2023, Innscor’s revenue grew by 14,7 percent to US$804,040 million driven by improved capacity utilisation across the group’s core manufacturing businesses, and further supported by the introduction of new product categories, category expansions, and route to market optimisation strategies undertaken during the period.
“Innscor has deployed capital expenditure of US$125 million in the past two financial years to achieve manufacturing efficiencies and product diversification, with a further US$50 million being committed for the full year 2024.
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“Notable planned investments in the current financial year include further plant automation and capacity upgrades at the Harare bakery plant paired with recapitalisation of the delivery, a new rice packaging facility, a new US$7 million stockfeed facility under Profeeds to ease capacity constraints and upstream capacity extension at Triple C pig production facilities,” IH Securities said in a recent earnings update.
“Focus for management in the coming year is to seamlessly incorporate new investments into operations, providing volumes upside for the group.”
During the financial year 2023, volume growth for the bakery division was muted compared to the comparative year, mainly on account of the pricing dynamics experienced early in quarter one, as inflated international wheat pricing resulted in an adverse effect on bread pricing to the consumer.
At National Foods, aggregate volumes contracted by three percent during the comparative period, mainly driven by the performance of the flour division.
Profeeds operated at full capacity for the year under review, delivering stockfeed volumes 9,5 percent ahead of the comparative year on the back of sustained demand in the poultry category.
At Nutrimaster, a subsidiary of Profeeds, sales volumes increased 35 percent over the comparative year, underpinned by a strong order book across the row-cropping, horticulture and tobacco segments.
At Colcom Foods, demand for fresh pork remained firm, resulting in volume growth of eight percent, supported by double-digit growth across the sausage and polony categories over the comparative year.
At Irvine’s, volume growth was concentrated in the table egg and day-old chick categories, growing 14 percent and seven percent, respectively, over the comparative year, whilst the frozen chicken category continued to operate at capacity, and volumes closed at the same level as the comparative year.
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