Innscor ploughs US$17.46m into contract farming drive
LIVINGSTONE MARUFU
Diversified conglomerate Innscor Africa Limited has channelled over US$17m into contract farming as it intensifies efforts to strengthen self-sufficiency while improving livelihoods across its farming network, Business Times can report.
The group, through its subsidiary Paperhole Investments (PHI), is deepening its footprint in commodity trading, farming, and agricultural input supply as part of a broader strategy anchored on sustainable growth and national food security.
Board chairman Addington Chinake said the company remains firmly committed to expanding both its contract farming initiatives and corporate farming operations.
“During the current period, the group, through its Paperhole Investments (PHI) and ‘Agrowth’ contract farming programmes, invested a total of US$17.466m into these initiatives, supporting almost 200 commercial and small-scale farmers in the production of both winter wheat and summer row crops,” Chinake said.
Under the programme, more than 9,000 hectares were put under cultivation, delivering a combined output of approximately 56,000 metric tonnes, underscoring the scale and impact of the initiative.
The agricultural push comes as Innscor posts a strong financial performance for the six months ended December 31, 2025, with revenue climbing 18.7% to US$635.8m from US$535.8m in the prior comparative period.
“This performance was driven primarily by strong sales volumes in the Mill-Bake segment, a pleasing volume recovery across the Protein segment, and continued momentum in selected categories within the Beverage and Other Light Manufacturing segment,” Chinake said.
Profit after tax surged 64% to US$54.98m, up from US$33.44m in the comparable period, reflecting improved efficiencies and sustained demand across key business units.
Operating profitability also strengthened, with EBITDA rising 36.6% to US$80.37m from US$58.82m. This translated into an improved EBITDA margin of 12.6%, compared to 11.0% previously.
Depreciation and amortisation increased modestly, reflecting ongoing capital investments, as the group continues to commission major expansion projects across its portfolio.
Net interest expenses edged up marginally, largely due to additional borrowings taken on to fund working capital and expansion initiatives. However, Chinake noted that the group is making steady progress in lowering its overall cost of borrowing.
Fair value gains from biological assets and listed investments rose to US$7.78m from US$4.15m, driven mainly by a larger biological asset base within the group’s pork operations, in line with International Accounting Standard (IAS) 41.
Buoyed by the strong half-year performance, the board declared a dividend and signalled continued investment momentum, with an extensive pipeline of expansion projects planned across all operating segments.
The group’s sustained investment in agriculture not only strengthens its vertically integrated model but also positions it as a key player in Zimbabwe’s food security matrix.
