Food and Manufacturing Drive Innscor’s Q3 Gains

Witness Runodada- Zim Now Reporter

Innscor Africa Limited has posted steady growth for the third quarter ended 31 March 2025, reflecting improved operational efficiency, sustained consumer demand, and the impact of earlier strategic investments—despite a tight monetary policy and ongoing economic pressures.

In a trading update released on 13 May, the diversified manufacturing and food group said it operated under relatively stable market conditions throughout the quarter.

“The Group operated under relatively stable market conditions during Quarter Three, with many of the trading dynamics highlighted within the Group’s Interim Report remaining unchanged,” it stated.

Authorities maintained a tight monetary policy, which led to constrained liquidity. However, Innscor noted that stable currency dynamics allowed for better pricing and improved business sentiment.

“The stable currency dynamics have ultimately benefitted the end consumer through more efficient pricing discovery and allowed for a consequential improvement in business sentiment,” the Group noted.

The company attributed its performance to expansion efforts, cost optimisations, and shifts in consumer patterns. Beverage and light manufacturing segments posted firm volume growth following the commissioning of new capacity in several categories.

“Volumes were driven by the commissioning of further capacity expansion projects… supported by an intensified focus on optimising the bill of materials, and on pricing for the consumer,” said the company.

The Protein segment, which earlier faced significant cost pressures, reported stabilised volumes.

Investments made in response to economic conditions and evolving consumer needs are now contributing positively.

“Many of these initiatives are now reaching operational scale and are starting to contribute to volume performance.”

The Bakery division recorded growth in bread and confectionery. However, flour cost pressures limited volume growth despite steady demand and retail pricing.

At National Foods, most categories performed well: Flour volumes rose, especially in Baker’s flour and pre-packed offerings. Stockfeeds grew by 10%, driven by poultry and beef demand.

Maize volumes surged 58% over nine months, though margins remained tight.

“We anticipate a recovery in volume and margins leading into the 2024/25 harvest,” the company said.

The Cereals division remained under pressure due to competition from cheaper imports. Colcom (Triple C Pigs) volumes fell 9%, linked to lower pig deliveries, though expansion at breeder and grower facilities is underway.

Natpak’s packaging volumes declined 9%, despite resilience in beverages and tobacco-related packaging.

Irvine’s poultry division showed modest growth in frozen poultry and eggs but continued to struggle with compressed profit margins.

AMP Group posted strong volume growth in beef and processed meats, supported by branding and new product development.

Yogurt volumes rose 27%, and new product launches such as Revive and Delight drove performance in drinking yoghurt and mahewu. However, milk supply constraints affected other dairy segments.

Both units posted positive results, with growth in bottled water and sports drinks. The company said its focus remained on expanding product baskets and improving efficiency.

The “Nyathi” beer brand continued to record strong consumer reception, adding to Innscor’s diversified beverage footprint.

Fertiliser volumes dropped 16%, but the company is optimistic about a recovery in the next agricultural cycle.