Innscor’s US$35.84m expansion blitz

LIVINGSTONE MARUFU

Innscor Africa Limited , a publicly traded diversified conglomerate,  is aggressively ramping up its growth ambitions, investing a hefty US$35.84m into capital projects, Business Times can report.

The latest spending spree underlines the group’s push to sharpen operational efficiency, entrench market dominance, and secure sustainable long-term returns for shareholders.

The scale of Innscor’s reinvestment signals a resolute commitment to innovation and expansion, positioning the group to thrive amid Zimbabwe’s increasingly dynamic and unpredictable business landscape.

Over the past two financial years, Innscor has deployed an extraordinary US$195m toward capital expenditure across its broad range of business units.

These investments have funded the construction of new factories, boosted production capacity, and driven product diversification — with much of the momentum centered around its flagship subsidiary, National Foods Limited (Natfoods), Zimbabwe’s largest food manufacturer by volume.

Strong internal cash generation has powered this expansion. Group chairman Addington Chinake said the company’s healthy cash flows have allowed it to finance growth initiatives while maintaining a conservative approach to debt.

“The group invested a total of US$35.849m into capital expenditure projects during the six months to December 31, 2024, primarily targeted toward expansion initiatives at National Foods, as well as the Bakery and Colcom divisions,” Chinake said.

From a cash generation perspective, Innscor delivered an outstanding operating cash flow of US$69.546m, representing a 7% improvement over the comparable period.

Chinake said this robust cash position allowed the group to fund its aggressive expansion drive without exposing the balance sheet to excessive risk.

Innscor’s capital investments span a number of strategic projects.

In the past few years, the conglomerate has rolled out a new US$22m bakery plant in Bulawayo, designed to enable Bakers Inn to dominate Zimbabwe’s southern provinces. It also undertook US$32m worth of growth projects at National Foods, cementing its leadership in the milling and food manufacturing sectors.

At National Foods, Innscor has commissioned a new flour mill in Bulawayo, aimed at enhancing supply chain efficiency in the region.

In Harare, the group has developed a new pasta and biscuit production line to tap into growing consumer demand for value-added food products.

Further diversifying its offering, Innscor introduced a breakfast cereal range, NutriActive, catering to the rising appetite for healthier and more convenient meal options.

Critically, the new pasta plant relies on locally contracted wheat, reinforcing Innscor’s commitment to supporting Zimbabwean agriculture. According to official statistics, National Foods is now the country’s largest private wheat contractor, having purchased 60,000 tonnes of wheat during the most recent season.

The results of these investments are already reflected in Innscor’s financials. Revenue for the half-year period rose to US$535.787m, up from US$480.4m recorded in the same period last year — an 11.5% surge.

This growth was driven by strong volume increases across the mill-bake, beverage, and light manufacturing segments, supported by strategic pricing designed to protect key consumer price points amid a fragile economy.

Profit after tax also edged higher, rising 1% to US$33.43m compared to US$33.22m in the comparative period. Although the margin growth was modest, it underscored the group’s ability to remain profitable despite economic headwinds, input cost inflation, and currency volatility.

Looking ahead, Innscor is cautiously optimistic but acknowledges that the consistency of government policy will be critical to sustaining investment momentum.

“In the outlook, the group remains hopeful that consistent and predictable economic policies will be pursued; this will, in turn, enable meaningful investment planning to take place,” Chinake said.

“It will allow for the business to focus on core operating and trading activities that deliver real economic value to all stakeholders and, critically, will ensure that the requisite returns on the significant expansion investments already undertaken are achieved for shareholders.”

Innscor’s investment blueprint extends beyond merely boosting short-term profits. The group is focused on creating an industrial ecosystem that deepens local value chains, enhances domestic sourcing, and drives manufacturing excellence.

Its emphasis on building new plants, modernizing technology, and launching diversified product ranges signals a clear long-term strategy to lead Zimbabwe’s industrial recovery and play a bigger role across Southern Africa.

Analysts say Innscor’s strategy mirrors those of successful African conglomerates that have expanded during periods of macroeconomic uncertainty, using downturns as opportunities to build capacity and seize market share.

Should Zimbabwe’s macroeconomic environment stabilize, and should monetary and fiscal policies remain supportive, Innscor’s ambitious US$195m investment programme could catapult the group into a position of unrivaled industrial dominance both locally and regionally.

Despite the challenges, one fact is increasingly evident: Innscor is not merely adapting to Zimbabwe’s turbulent economy — it is boldly reshaping the landscape, one investment at a time.