Natfoods invests US$30m

BUSINESS REPORTER

 

Leading agro-processing firm, National Foods Limited (Natfoods), is investing US$30m in new projects as the company moves to ramp up production and expand its footprint.

Major projects under the fund include a new flour mill for Bulawayo, a second breakfast cereal plant for Harare, new biscuit and pasta plants as well as substantial reinvestment into the Harare stockfeeds plant, board chairman Todd Moyo said.

“Based on this, the group has embarked on an exciting growth phase with entry into several new categories as well as significant investments into existing categories,” Moyo said in a statement accompanying the financial results for the year ended June 30,2022.

“Many of these products will see the localised manufacture of products which had previously been imported, reducing foreign currency requirements and increasing demand for locally grown produce. Our team remains intensely focused on delivering a range of quality, healthy and affordable products which ultimately will improve choice to local consumers.”

Revenue for the group in the period under review grew 33% to ZWL$128.4bn from ZWL$96.7bn reported in the previous year, driven by both volume growth and inflation-driven price increases.

Sales volume for the period under review increased by 8% to 569 000 tonnes compared to the prior year.

However, operational expenditure grew by 37% during the period under review.

Operating profit increased by 301% from the prior year to ZWL$14.74bn.

This was driven by significantly increased interest costs in line with higher interest rates; as well as a decline in equity-accounted earnings of 41%, which was largely attributed to the disposal of Pure Oil during the period.

The company’s financial position remained strong, with adequate resources to fund the expansion phase that the group has embarked on, Moyo said.

The company declared a dividend to the shareholders.

The payment of the final dividend will be done on November 25, 2022.

Moyo said management would continue to focus on ensuring business models are robust and fit for purpose with a particular focus being placed on volume growth, cost optimisation as well as ensuring that working capital deployed in each unit is appropriate for the economic circumstances.

 

Related Articles

Leave a Reply

Back to top button