Natfoods volumes up 24% in Q1

LIVINGSTONE MARUFU

Listed agro-processing concern, National Foods Holdings, says volumes were up 24% in the first quarter ended September 30, 2021 to 143,000metric tonnes on increased consumer demand.

Flour volumes increased by 5% compared to last year. Demand was firm and the mills ran at capacity for most of the period, company secretary Leigh Howes said.

Stockfeed volumes increased by 29% versus last year, as demand for poultry feed continued to remain firm, notably from small scale producers.

In the maize unit, there was a recovery in volumes which increased by 25% over the same quarter last year.

“This was an encouraging outcome as demand is normally muted following a good harvest, and reflects the impact that imports had on demand last year,” Howes said.

Demand for Pearlenta Nutri Active instant porridge continued to increase, with volumes growing by 75% compared to last year.

For the newly established Down-packed unit, which houses the rice, salt, sugar beans and popcorn categories, volumes continued on an upward trajectory, increasing by 59% when compared to last year, the company said.

Howes said the authorities have to move with pace to stabilise the economy to improve production levels.

“…it is expected that volumes will show continued growth over last year. However, it is hoped that some of the recent economic challenges can be addressed, in order to slow inflation and restore general business confidence,” Howes said.

She said early this year there was relative stability but in the last few months, there was an upturn in inflation and generally more challenging business conditions.

Despite Natfoods being bullish regarding the future of the economy, the period ahead needs to be carefully navigated to sustain the recent economic gains.

She said consumer demand has continued on a positive trajectory and this has translated into volume growth across all categories for the period.

Maize volumes for the recently concluded 2020-2021 harvest were excellent and the 2021 wheat harvest (which is currently underway) promises to be the best in many years as National Foods is expecting  over 30,000 tonnes, Howes said.

Flour volumes increased by 5% compared to last year with the demand being firm as the mills ran at capacity for most of the period.

Stockfeed volumes increased by 29% versus last year, as demand for poultry feed continued to remain firm, notably from small scale producers.