Published: 05 September 2013

National Foods Holdings recorded an after tax profit of $13,9 million for the year ended June 30, 2013, an increase of 76 percent from the prior year due to an increased in capacity utilisation as the group's strategy to "fix, optimise and grow" gained traction in all core categories.

Revenue for the period under review jumped 26 percent from $234 million the prior year to $296 million on a volume increase of 21 percent.

In a statement accompanying the results, National Foods chairman Mr Todd Moyo attributed the increase in volumes sold to an increased capacity utilisation which also saw them increasing their net working capital from $13,6 million to $46,7 million.

"The group recorded a volume increase of 21 percent, while total volumes sold of 489 000 tonnes represent capacity utilisation of 46 percent while our net working capital increased in order to fund the increase in volumes produced along with more appropriate on-balance sheet funding structures," he said.

Total assets increased by about 29 percent to end the period under review at $114,1 million from $88,5 million the same period last year, while total liabilities also rose 38 percent from $38,5 million to $53,3 million.

The group added that they will invest $7 million in the forthcoming financial year as they seek to increase volumes sold in the year by undertaking further upgrades into the plant and equipment.

National Foods Holdings are into flour and maize milling, stock-feed production and fast moving consumer goods manufacturing.
- herald

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