$50m for innscor expansion

HARARE - Divesified group Innscor Africa Limited (Innscor) plans to invest $50 million towards expansion of its footprint, chief executive Tom Brown said.

Brown said approximately $38 million of the funds would be spent on its bakeries, fast food outlets, pork-processing business Colcom and some on refrigerator manufacturer — Capri.

“We are going to continue with our expansion, improve efficiencies and we hope to maintain revenue growth of 15 percent,” Brown said while presenting Innscor’s financials for the year ended June, 2012.

Julian Schonken, Innscor’s finance director, also said the Zimbabwe Stock Exchange-listed group was set to commission a new refrigerator plant in the last quarter of 2013 and hoped to introduce the product in the region.

Schonken said the group planned to open 33 additional fast foods outlets comprising Chicken Inn, Pizza Inn and Nandos, in 2013.

He said an extra bakery production line with a 100 000 loaves per day capacity was on schedule for installation in October to bring overall capacity to 500 000 loaves per day.

Schonken said TV Sales and Home — the group’s furniture retail arm — was set to open four new outlets with five more under consideration.

During the year under review, Innscor registered a 44 percent growth in operating profit to $68,5 million and a 21 percent revenue growth to $627,1 million.

Schonken said the company generated $48 million in cash from operating activities.

He said the group also realised $5,1 million from disposal of part of its shares in milling business National Foods Limited (NFL) to Tiger Brands Limited.

Basic earnings per share grew 48 percent to 7,15 cents while total dividend declared per share went up 46 percent to 1,75 cents.

The group’s bakeries and fast foods division in Zimbabwe and across the continent recorded a 53 percent growth in volumes.

“This growth was driven by a third new line which was commissioned in Harare in November last year,” Schonken said.

Customer base in its fast foods operations grew 11 percent after 13 counters were added to the store network across Zimbabwe — eight in Harare, three in Marondera and two in Mutare.

Regional fast foods operations’ customer count grew by three percent after 10 new counters were opened in Kenya.

However, Innscor said this was offset by closure of six counters in the country.

In Zambia and Senegal, the group opened two and three fast foods counters respectively.

Its Distribution Group Africa which operates in Zimbabwe, Zambia and Malawi delivered a 20 percent volume growth.

The group’s Spar Corporate Store retail operations in Zimbabwe posted $0,83 million trading loss after closure costs of some of its outlets.

The division closed and disposed three smaller outlets.

Colcom recorded volume growth of 31 percent in its core pork products.

“This was largely due to equipment upgrade that improved efficiencies,” said Schonken.

Capri registered strong results with volumes growing 49 percent.

Innscor’s 38 percent owned NFL recorded a 15 percent growth in overall volumes to 40 400 metric tonnes due to improved plant efficiencies.

Despite increased competition from imported products, its poultry business, Irvine’s, recorded a 14 percent volume growth on processed chicken, 19 percent on day-old chicks sales and one percent on table eggs.

TV Sales and Home volumes went up 30 percent with the quality of the debtors book remaining high.

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