Innscor to consolidate bakery operations

Published: 06 March 2014

Diversified group Innscor Africa Limited plans to consolidate its bakery operations in Harare due to a decline in demand.

Innscor board chairman David Morgan said bread production would be done at the Graniteside facility until demand rises.

"As a result of the current market conditions, production in Harare will now be consolidated at the Graniteside facility which houses four most recent lines; the remaining site in Harare will be moved onto a care and maintenance programme until such a time as demand improves," he said.

He said the bakery division had performed badly during the six months ended December 31 2013 recording a 10 percent decline in volumes.

Fast foods operations in Zimbabwe remained flat in the period under review although lower margins and increased overhead costs negatively affected profitability.

However, regional customer counts increased by 5 percent resulting in similar growth in revenue and profitability.

The group recorded a 55 percent growth in revenue from $337,8 million in the prior year to $525,2 million. Profit for the period marginally increased to $26,7 million in the period under review from $25,9 million in the comparable period.

The group's milling and protein division, which consists of National foods, colcom and Irvines performed well during the period.

Natfoods experienced a 7 percent growth while Colcom recorded a 17 percent increase in volumes and Irvines registered a 15 percent growth in poultry sales and a 14 percent growth in Sales of day-old chicks for the period.

TV Sales and Home recorded 14 percent growth in revenue on the back of revised instalment credit offering from 12 months to 24 months.

The board also declared an interim dividend of US0,60c per share payable to shareholders registered in the company's books by March 22.
- BH24

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