Innscor plans nearly US$150m capex

LIVINGSTONE MARUFU

Innscor Africa Holdings Limited, a cash-rich and expansive diversified conglomerate, is planning to spend close to US$150m over the next two years on capital expenditure (Capex) across its strategic business units, Business Times can report.

The announcement follows million of dollars invested over the past five years in Capex and maintenance, as the blue-chip firm leveraged economies of scale to consolidate market dominance.

Speaking at an analyst briefing last Friday, Group CEO Julian Schonken told stakeholders that the substantial investment forms part of a broader strategic initiative to enhance operational efficiency, strengthen market position, and secure long-term sustainable returns.

“We have invested around US$74m during 2025, with US$64m going towards Capex investment and US$10m towards maintenance. I think the levels will be largely similar in 2026. And perhaps 2027 might also be of a similar level. As you know, we’re an inquisitive business. Largely similar in the next two years. So, I would definitely say 2026 will be quite similar to what we’ve seen in 2025 and even in 2024,” Schonken said.

He noted that strong operating cash flows enabled the group to continue its extensive Capex programme, with a total of US$73.909 m invested in the year under review. A further US$14.290 m was deployed in share buy-backs at both the parent and subsidiary company levels.

Innscor’s subsidiaries and associates include well-known brands such as National Foods Holdings Ltd, Profeeds (Pvt) Ltd, Baker’s Inn, Irvine’s Zimbabwe (Pvt) Ltd, Colcom Division, Associated Meat Packers (Pvt) Ltd, Probottlers (Pvt) Ltd, Probrands (Pvt) Ltd, Prodairy (Pvt) Ltd, and NatPak (Pvt) Ltd.

National Foods invested in biscuit and pasta plants, snacks expansion, rice downpacking, and storage. In the bakeries division, the group undertook automation initiatives in Harare and expanded Baker’s Inn delivery fleet. Profeeds invested in a new Bulawayo stockfeed factory and Harare Distribution Centre, while Colcom focused on upstream piggery operations, Coventry Road factory modernization, and retail shop expansions.

The investments aim to scale operations, consolidate the company’s position in key market segments, and ensure competitiveness across its diverse sectors, which include cereals, protein, dairy, beverages, and packaging. Schonken emphasized that each subsidiary plays a critical role in driving overall growth.

“At National Foods, we have quite a big upgrading programme taking place; we want to add a biscuit plant. At Colcom, most of the expansion has been upstream in delivery operations, which is really exciting. At Profeeds, after the incident at the Ferrari factory, a new fully automated, world-class Bulawayo factory is now operating since mid-March. And at Buffalo Brewing Company, we’ve commenced investment into a second line, which will be completed during 2026,” Schonken said.

He added that the group’s treasury shares have evolved to US$18 million, and current market conditions encourage continued expansion as Innscor contributes to the country’s economic recovery.

“We want to play our part in increasing local value and manufacturing. It’s really critical that we do that. We want to increase formal job opportunities. We understand our role in the economy, and we’re really keen to play a big part in it. We’ve spoken a lot about the fiscal and regulatory costs affecting our group and other formal operators. But we’re encouraged with the dialogue that’s occurring, the review process underway, and hope there’ll be some benefits to the formal business sector very soon. I would say that the group is entering a very, very exciting phase,” he said.

Innscor’s diversified portfolio and continued investment in production capacity aim to secure a strong future in a volatile economic environment. The group recorded revenue of US$1.086 bn for the year ended June 30, 2025, a 19.4% growth over the prior year, driven by volume momentum across core segments and strategic pricing initiatives.

Profit for the year rose 6% to US$50.99m  from US$48.16m, while depreciation and amortization increased by 16.2% to US$33.247m, reflecting the company’s ongoing capital investment.