Zimbabwe’s billion dollar Innscor unbundles fast food business, to list separately on ZSE

Zimbabwe’s billion dollar Innscor unbundles fast food business, to list separately on ZSE

HARARE, June 2 (The Source) – Zimbabwe’s largest company by revenue, Innscor Africa Limited is set to unbundle and separately list its fast food business in a bid to improve operating efficiencies, the company announced on Tuesday.

The conglomerate, which became the first Zimbabwe Stock Exchange-listed firm to breach the $1 billion revenue mark in the full-year to June 2014, said the restructuring of its business had begun after the board approved the move. Innscor’s business straddles manufacturing, food processing, distribution and retail.

South African former Ellerine Holdings group chief executive Tony Fourie, appointed Innscor head last year, is spearheading the group’s restructuring drive.

Innscor’s fast food business has expanded rapidly on the African continent, with the firm now having more counters in the region (196) than the 171 it has in Zimbabwe. The group operates its own fast food outlets in Kenya, Zambia, Ghana and the Democratic Republic of Congo as well as franchised operations in Swaziland, Lesotho and Malawi. These regional operations weighed in with $52 million in revenue in FY2014, while the Zimbabwean fast food business, where Innscor enjoys 82 percent market share, contributed $98 million.

Innscor’s fast food business – which includes its own brands Chicken Inn and Pizza Inn as well as Nandos and Steers franchises — contributes 14 percent of the group’s revenue.

Last month Innscor announced plans to re-enter the Nigerian market and expand its logistics and distribution unit as the conglomerate seeks to minimize its portfolio risk.

With the Zimbabwe business accounting for 88 percent of revenue, the group says it plans to grow its footprint in the region and spread risk at a time aggregate demand has been weakening in Zimbabwe. The group also seeks to achieve rapid but sustainable profit through organic and acquisitive growth.