Wakanda News Details

Innscor PAT doubles to $3,63bn

BY TATIRA ZWINOIRA INNSCOR Africa nearly doubled its profit-after-tax (PAT) to $3,63 billion in its full year to June 30, 2020 owing to an improved product mix as well as enhanced production and overhead efficiencies. The increased PAT rose from $1,84 billion earned in the 2019 comparative period. The results were adjusted for inflation. In a statement accompanying the full year results, chairman Addington Chinake said the group posted revenue of $23,938 billion, a 24% increase on $19,34 billion last year. “Revenue growth was achieved on the back of mixed volume performance, the gradual removal of subsidies on most products, as well as inflation-induced price adjustments,” he said. “The group’s improved product mix, coupled with a well-priced strategic raw material investment and enhanced production and overhead efficiencies, combined to deliver an operating profit of $3,859 billion for the year under review, representing a growth of 54% over the comparative year.” Due to exchange differences arising on the translation of foreign operations, net of tax, the group posted an additional $1,48 billion in income for the period under review. “The group’s financial income was dominated by revaluation gains on financial assets while fair value losses on biological assets resulted from the reduction in the real market value of parts of the group’s livestock herds, and represents lower real sales pricing being realised within the protein markets,” Chinake said. He said the group’s associates delivered a pleasing increase in earnings, with all business units contributing positively to the overall result, amid depressed volumes in some segments. The bakery division’s overall annual loaf volumes declined by 36% due to limited flour availability. “National Foods delivered a solid performance, notwithstanding a 25% volume drop against the comparative year to 456 000mt, driven largely by reduced consumer purchasing power,” Chinake said. “The Colcom division, comprising Triple C Pigs and Colcom Foods experienced an 18% decline in overall sales volumes year-on-year. Apart from the fresh pork category, which continued to show pleasing volume growth, all other categories showed a volume decline versus the comparative year.” However, Irvine’s recorded a 13% volume growth in table eggs, with the volumes achieved being a record high for the business. “Frozen chicken volumes were, however, 21% behind the comparative year, while day-old chick volumes were down by 27% as demand reduced in the small-scale farmer market in response to the current economic conditions, diminished crop yields and the disruptive effects of COVID-19 lockdown measures,” Chinake said. He said volumes at the AMP Group grew 7%, enhanced by the continued growth of the retail network. NatPak performed well as volumes during the year were 18% above those recorded in the comparative year, driven by the increased utilisation of the corrugated packaging plant and the newly commissioned rigids packaging operation. “Volumes at Prodairy increased by 5% on the comparative year, d

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