LIVINGSTONE MARUFU
Innscor Africa Limited has set aside US$56m in new projects in the new fiscal year as the manufacturing and retail conglomerate expands its footprint.
In the previous financial year, Innscor invested US$70m.
“…A further US$56m additional investment is planned for the forthcoming financial year,” board chairman Addington Chinake said.
He said the 2023 financial year would see a considerable number of these projects being commissioned across the group, enabling production capacity increases, adding new product categories, significantly improving product quality and further enhancing production efficiencies; all enabled via the introduction of world-class technologies and plant automations.
“Given its size and the nature of the manufacturing cycle, the group is reliant on both shareholders’ equity and debt funding which it deploys, collectively, in the considerable working capital pipelines it needs to establish in order to ensure consistent supply of product to the market and to ensure that its vast capital maintenance and expansion projects can be executed on,” Chinake said.
In its financial results for the 12 months to June 30, 2022 revenue for the group rose 49% to ZW$290.780bn from ZWL$195.08bn.
Revenue growth was underpinned by strong sales volumes across all core categories as the group’s business units achieved improved capacity utilisation, introduced new products, and expanded product offerings across existing categories; this combined with optimal pricing strategies and growing demand from the informal market drove the group to achieve a pleasing result.
Profit grew 350% to ZWL$53.68bn in the period under review from ZWL$11.93bn achieved in the prior comparative period.
In the outlook, Chinake said management will look to capitalise on the tremendous ‘learnings and gains’ experienced and achieved over the past year.
He said it remained positive that the excellent growth trajectory achieved was driven by a continued focus on broadening product ranges, significant investment into modern manufacturing processes and technologies, extending production capabilities, and ensuring product and pricing relevance across the market spectrum.
