Natfoods reduces dependency on imported products
LIVINGSTONE MARUFU
Leading agro-processing firm, National Foods Limited (Natfoods), has embarked on an ambitious programme to reduce dependency on products previously imported, a move which will ease pressure on foreign currency.
Natfoods board chairman, Todd Moyo, said the group was embarking on an exciting period of expansion with entry into several new categories as it seeks to value-add its portfolio of basic products.
“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,” Moyo said in a statement accompanying the company’s financial results for the full year to June 30, 2022.
He said the team remained “intensely focused” on delivering a range of “quality, healthy and affordable products”.
Revenue for the group in the 12 months to June 30, 2022, grew by 33% to ZWL$128.4bn from ZWL$96.7bn 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 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.
Volumes have recovered early in the new financial year with the adjustment in the pricing of competing “on the go” food products.
The board has approved the purchase of a new biscuit line, which will allow National Foods to extend its biscuit portfolio beyond the current basic loose biscuit proposition to more specialised biscuits such as creams.
Work on the project is underway and the new line is expected to be commissioned late in 2023.
National Foods continues to keenly support contract farming of maize, soya beans, wheat, sugar beans, sorghum and popcorn.
During the current winter season around 12,000 hectares of wheat have been planted, representing a significant portion of the contracted crop.
In addition to this, 40,000 tonnes of maize and soya beans were delivered on this year’s summer cropping programme.
The various products grown under this programme now constitute a significant portion of the group’s raw material requirements.
