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An Innscor outlet in Bulawayo

Prosper Ndlovu Business Editor
INNSCOR Africa Limited has posted a 54 percent growth in revenue with turnover breaching the billion dollar mark in an economy saddled with liquidity challenges. According to the group’s financials for the full year ended June 30, the giant conglomerate recorded a turnover of $1,010,916,667 up from $656,332,118 in the prior year.

Profit for the year spiked $78,8 million from $48,5 million while total assets value settled at $548,2 million from $348,5 million compared to total liabilities of $231 million, showing the company’s financial sound standing.

The group’s milling and protein arm brought cheer with National Foods Holdings posting eight percent increase in volumes and 20 percent profit while profit at Colcom increased 200 percent to $5,1 million.

Distribution Group Africa Zimbabwe operations reported $92,7 million revenue and a volume growth of 17 percent while the Spar division remained steady despite posting $159,6 million revenue down from $167 million.

The household division also posted a six percent revenue growth of $53 million while other smaller businesses like the packaging operations at Natpak recorded 14 percent trading profit.

The group has declared a final dividend of 0.70 cents per share, bringing the total for the year to 1.30 cents per share payable next month to shareholders.
Fast foods outlets in Zimbabwe recorded two percent lower customer counts compared to the prior year although performance remained averagely good.
However, foods operations in the region reported an increase of four percent customer counts over the prior year with similar increase in profitability.

Innscor board chairman David Morgan said the group continued to face a challenging trading environment compounded by “inefficient management structures in a number of its core businesses”.

He said gross profit margins were reduced in many cases in an effort to stimulate revenues against a backdrop of reduced disposable incomes.
Morgan said profitability during the year under review was also affected by a fixed asset impairment and a de-recognition charge of $1,83 million, which was excluded from the calculation of headline earnings.

The group’s bread volumes in the bakery operations declined 10 percent compared to the prior year.
“This volume reduction together with an increase in operating overheads combined to produce a poor overall result for the business with profitability significantly lower than that achieved in the prior year,” he said.

Morgan said the group opened 16 additional counters during the year under review across the country in Bulawayo, Harare, Mutare Chegutu and Mvuma while nine under performing counters were closed.

The giant corporation runs outlets such as Chicken Inn, Nando’s Creamy Inn, Bakers Inn Steers, Irvine’s Zimbabwe, Spar, Savemore, Colcom, National Foods and Shearwater adventures.