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Baker’s Inn launched the Buy and Win promotion at a local hotel in Bulawayo yesterday. In the picture above, staffers pose next to one of the prizes

Oliver Kazunga, Senior Business Reporter
INNSCOR Africa Limited recorded a marginal 1.1 percent drop in revenue to $580.3 million in the financial year ended June 30, 2017.

During the same period last year, the Zimbabwe Stock Exchange-listed entity’s revenues amounted to $586.9 million.

Group’s chairman, Mr Addington Chinake, said during the period under review, cost benefits were realised at operating unit level following various restructuring programmes initiated over the past year as a result of more streamlined and focused management structure.

“The lower level of operating expenditure incurred was the principal driver in the improvement recorded at operating profit level, which at $65.519 million was a 19 percent increase compared to prior year,” he said.

Below the operating profit level and of significance was the exceptional charge of $7.284 million, which resulted from the outbreak of Avian Influenza at Irvines.

The above charge relates to the value of livestock culled as a result of the outbreak and to prevent further infections from taking place.

Mr Chinake said an unfavourable variance in the group’s fair value adjustment was mitigated by an improvement in the collective performance of Innscor’s associate entities.

Overall profit before tax at $41.63 million was seven percent above that recorded in the prior year.

Profit after tax for the period from discontinued operations of $0.984 million was largely a result of the profit recorded on the disposal of the Spar Zambia operation and The River Club, which took effect on November 30, 2016 and June 30, 2017 respectively.

The group’s headline earnings per share, which excludes the exceptional charge incurred at Irvines as a result of Avian Influenza, increased by 39 percent to $4.74 over the prior year.

“In order to adapt to the prevailing conditions, significant focus was placed on reducing the group’s foreign creditor positions in the second half of the year under review, and this, coupled with the migration from imported maize supply to local maize supply following a successful local agricultural season, saw a cash flow increase in the group’s working capital position of $47.702 million,” he said.

The group declared a final cash dividend of $0.90 per share and an interim cash dividend of $0.70 per share bringing the total dividend paid for the financial year under review to $1.60 per share. —@okazunga