Innscor counts avian flu losses

HARARE - Listed light manufacturing group, Innscor Africa Limited, yesterday reported a $6,27 million decline in revenue, a development which the company chairperson
Addington Chinake attributed to the avian influenza epidemic that hit the country last year.

The group posted revenues of $304,81 million for the six months ended December 31, 2017, representing a drop of  $6,27 million from $311,08 million recorded in the previous  period.

Chinake said the decline in revenue was a result of the avian influenza which negatively affected Irvine’s volumes and the company’s stock feed business.

“The decline in revenue can be largely attributed to the effects of the avian influenza epidemic which reduced volumes at Irvine’s and the group’s stock feed operations,” Chinake said in a statement accompanying the group’s financials.

Chinake said Irvine’s revenue suffered a 13 percent drop following the loss of a significant portion of the company’s livestock in its broiler and layer operations.

“Irvine’s recorded a drop in revenue of 13 percent over the comparative period resulting directly from the outbreak of avian influenza towards the latter part of the 2017 financial year.

“The operation lost a large portion of its breeding and production livestock in both the broiler and layer operation as a result,” he said.

Chinake said the day-old chick business and the table egg volumes were seriously affected with the day-old chick business suffering a 33 percent knock, while table egg volumes were down by 43 percent.

“Day-old chick sales were heavily affected with volumes 33 percent lower than the comparative period while table egg volumes were 43 percent lower over the same period, with overall profitability reducing by 29 percent after including the final impairment charge of $2,04 million,” he said.

Innscor associate, Profeeds recorded a 21 percent decline in volumes over the period under review, which was attributed to a reduction in day-old chick availability.

“Profeeds recorded a 21 percent decline in feed volumes over the comparative period, with reduced day old chick availability being the major cause.

“The reduction in revenue was similar at 19 percent,” Chinake said. — The Financial Gazette

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