Innscor posts $1bn revenue

HARARE - Listed diversified group Innscor Africa Limited (Innscor) recorded $1 billion revenue in the year to June 2014, up 54 percent from $656 million realised prior year.

The group said performance of its units was below expectation despite the revenue being a record in Zimbabwe since dollarisaton in 2009.

Its chairman David Morgan said the group was facing a challenging trading environment for the greater part of the financial year.

“This has been compounded by inefficient management structures in a number of its core businesses, in many cases gross profit margins were also reduced in an effort to stimulate revenues against a backdrop of reducing disposable incomes,” said Morgan.

During the period under review, Innscor recorded an operating profit of $80,56 million compared to $67,4 million previous period and an after-tax profit of $78,8 million against $48,6 million in 2013.

The group’s local Spar operations in retail and distribution, bakery operations and fast food operations performances were subdued and approximately $7 million in one-off cost and restructure provisions were channelled through its statement of profit or loss.

Bakeries and the fast foods subsidiaries recorded a three percent decline in revenue to $261 million as demand for bread declined by 10 percent with 115 million loaves sold, compared to 128 million last year.

“This volume reduction together with an increase in operating overheads combined to produce a poor overall result for the business with profitability significantly lower than that achieved in the prior year,” said Morgan.

 

Comments (4)

Wow, if only we had about 10 companies of this magnitude in Zimbabwe, our economy will be boosted in a big way. The government needs to stimulate the economy by getting read of the controversial indigenousation bill which has stifled the economy. I pray that God gives our government a heart for the people they rule over. That they are leaders to serve not to be served.

MT - 15 September 2014

$1bn chaiyo chaiyo nhai?

Gono - 15 September 2014

..but Inscor you are fleecing us consumers. Go to Bakers Inn, minute maid drink is $1.20 ($0.85c in shops), tiny coke is $1.00 ($0.50 in shops). Portion chips is like half a potato. Honestly...

Gono - 15 September 2014

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