Innscor grows FY profit 11pct to $34mln

 Innscor grows FY profit 11pct to $34mln

HARARE, September 27 (The Source) – Light manufacturing group, Innscor reported an 11 percent increase in net income to $33,69 million in the full-year to June, from $30,48 million in the prior year on cost savings.

Revenue dropped to $580,3 million from $586,91 million previously, mainly due to the decline in associate National Foods’ sales volumes.

Natfoods volumes dropped 10 percent to 507,000 tonnes after the maize division underperformed. The division’s volumes dropped by nearly half to 85,449 tonnes from 154,292 tonnes in the previous year.

However, volumes at Colcom grew 13 percent over the prior year on the back of a 14 percent increase in pork production and a 34 percent increase in pie sales.

Earnings before interest, tax,depreciation and amortisation (EBITDA) increased by 18 percent to $65,52 million from $55,32 million in the previous year on operational efficiency.

Operating expenses declined by 7 percent to $146,15 million from $157 million in the prior year.

The group’s capital expenditure for the period amounted to $16,56 million.

Another associate, Irvine’s recorded revenue growth of 5 percent over the prior year, driven mainly by an 11 percent increase in table egg volumes and a marginal improvement in average yield prices in the second half of the financial year.

However, an outbreak of avian influenza at its Lanark farm saw 215,000 chickens being culled by September, with some of the impact likely to be felt in the half year financial results.

Innscor chief executive, Julian Schonken said the farm is undergoing a sanitation process in readiness for restocking with full production expected in the second half of the current financial year.

At the moment, production levels are being sustained by the importation of hatching eggs.

“Irvines is a critical area for us, we are implementing a restocking programme and we should exit the quarantine period sometime in December. At the moment we are importing eggs and by next week we should be back in terms of full production as far as frozen chicken is concerned,” Schonken said

The Group disposed of its interest in Spar Zambia Limited and The River Club — luxury lodge in Zambia — during the period under review.

The group declared a dividend of 0,9 cents per share.