Colcom revenue up

HARARE - Zimbabwe Stock Exchange-listed meat processor Colcom Holdings Limited (Colcom), recorded a $52,8 million revenue in the year to June 2012, up 14 percent from previous corresponding period.

Despite the liquidity constraints eroding consumers’ disposable incomes, the firm posted a $6 million net operating profit. Earnings per share for the period stood at 2,87 cents down from 3,12 cents.

A final dividend of $0,60 cents was declared bringing the total dividend to $1,13 cents.

Colcom said pork sales volumes grew by 31 percent mainly due to the introduction of low margin products in the last seven months of the financial year.

“Pig performance at Triple C Division continued at high level resulting in an increase in pig production of five percent over prior year. In the factory, the number of slaughter pigs increased by four percent against the previous corresponding period,” said Colcom.

In the period under review, the group invested $3,2 million in capital expenditure and expansion projects with a new world class sausage line being commissioned resulting in a 32 percent increase in processing volumes.

Colcom’s meat packing unit performed exceptionally well with volumes growing by 55 percent and profitability also growing by 135 percent year-on-year.

The group’s associate company, Freddy Hirsch Zimbabwe, also performed well and contributed positively to the overall results.

In its outlook period the group emphasis will be to further increase distribution footprint across the country as well as penetrate into regional markets.

“The group will also continue to focus on cost reduction through supply chain management, while equipment upgrade in the factory will also be prioritised to ensure improvement in operational efficiencies.

These measures will see the group continue to grow profitability and cash generation in the next financial year,” said Colcom.

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