Innscor Posts Broad-Based Q3 Volume Growth on Stro...

Innscor Posts Broad-Based Q3 Volume Growth on Strong Demand

Rutendo Mazhindu- Zim Now Reporter

Innscor Africa Limited reported strong volume growth across most of its core businesses during the third quarter ended March 31, 2025, despite continued cost and margin pressures.

In its latest trading update released today, the group said a tight monetary policy had constrained market liquidity, but a stable currency had helped consumers through better price discovery.

“We remain hopeful that the prevailing stability will be sustained,” said company secretary A.D. Lorimer. “Fiscal discipline is key in reducing inflation and exchange rate volatility.”

Volumes in the bakery segment grew by 10%, supported by improved flour supply and plant efficiency. The Harare bakery is also set to commission a new fully automated production line this month.

National Foods, a major subsidiary, recorded a 22% volume increase compared to the same nine-month period last year. The maize division grew by 58%, mainly due to increased demand caused by the El Niño-induced drought. Snacks rose by 52%, and cereals also posted significant growth.

“The relaxation of the ban on rice exports from India has helped improve volumes in the down-packed division,” Lorimer said. “We are also lobbying for the removal of VAT on rice, as it is a basic commodity.”

At Colcom, pork volumes rose by 19%, while fresh beef volumes under AMP increased by 8%. However, processed meat products like sausages and polony declined by 10%, affected by retail disruptions.

Prodairy reported a 27% volume increase, with milk volumes up 9% and dairy blends and maheu growing by 34%. Mafuro Farming’s raw milk supply also rose by 14%.

The Buffalo Brewing Company’s “Nyathi” sorghum beer continued its strong performance, while Irvine’s chicken and egg products recorded steady gains.

However, sugar-sweetened beverages under Probottlers declined due to the sugar excise duty and competition from cheaper grey imports. Nutrimaster's fertiliser sales also dropped by 16% due to erratic rainfall.

“Margin pressure remains across the board,” Lorimer said. “But we are focused on keeping our products affordable and our operations efficient.”

Innscor said it remains cautiously optimistic and will continue investing in capacity while managing costs to stay competitive.