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Zimbabwe: Innscor Records Recovery As Economy Stabilises

ZIMBABWE Stock Exchange (ZSE) listed conglomerate, Innscor Africa Limited has seen a significant volume recovery on the back of the prevailing economic stability.

Presenting a trading update for the third quarter ended March 31 2021 recently, Innscor’s company secretary, Andrew Lorimer said significant recoveries had been recorded across the group’s segments.

He said at National Foods, cumulative nine-month aggregate volume growth remained steady at 14% over the comparative period.

The flour division experienced strong consumer demand, delivering cumulative nine-month volume growth of 46% over the comparative period whilst third quarter volumes also showed strong growth over the comparative quarter with firm volume demand in all major flour product categories.

The poultry sector recovery continued to drive favourable growth within the stockfeed division, with overall nine-month stock feed volumes being 27% ahead of the comparative period.

The groceries division maintained good growth momentum, driven by firm demand in both the rice and salt categories

Last year the government incepted the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system which has been largely credited for placing companies on a recovery and growth trajectory.

“Whilst the prospects of the local agricultural season appear very positive and the prevailing economic stability proving conducive for business, inherent complexities remain.

“Ongoing Covid-19 related cost and inefficiencies continue to periodically affect global supply chains, while the real cost-push effects of transitioning out of a hyper-inflationary environment have required continual evaluation and adjustment of the Group’s business models,” said Lorimer.

He said volumes at Colcom continued to recover into the third quarter, and from a nine months cumulative perspective are 19% ahead of the comparative period

From a cumulative nine-month perspective, Irvine’s table egg volumes increased by 12% over the comparative period, with a similar growth being achieved in the day-old chick.

Natpak also delivered a pleasing 21% increase in aggregate cumulative nine-month volumes against the comparative period.

Growth was very strong at Prodairy, surging by 42% over the comparative nine-month period, with all core categories contributing to the operation’s performance.

“At present, the financial status of the group remains healthy, and the impact of the Covid-19 has not created any issues from a solvency or liquidity perspective,” added Lorimer.