[2008-09-12]  Innscor posts $49,8m turnover
INNSCOR Africa Limited posted turnover of $49,8 million (revalued) in the year ended 30 June 2008 largely driven by the agro-processing business and fair value adjustments.

The sector contributed close to 50 percent of turnover at $22,6 million and profit before tax of $139 million.

Fair value revaluation for the group pegged at $185 million comprised mostly of adjustments to the value of livestock from Colcom Holdings and Niloticus crocodile ranching operations, contributed about $103 million, said deputy chief executive Mr Julian Schonken when presenting the annual results.

Profit before tax for the group was $226 million for the year, compared to $287 a year earlier.

Operating profit was ahead 27 million percent to $25 million this year from $92 (revalued) in June 2007.

Mr Schonken said the retail sector was affected by the price controls in the first quarter of the year.

Declining disposable income, power shortages and product supply constraints, "resulted in 4 percent decline in customer counts in fast foods and 31 percent decline in customer count in bakery."

He revealed that volumes at the Bread Company dropped 29 percent to 31 million loaves against 44 million previously. Mr Schonken said the pricing for the commodity locally was low at about 20 cents unlike the regional price of 50 cents. Despite the challenges, turnover was $1,3 million, whilst PBT was $5 million after taking into consideration fair value adjustments.

Manufacturing produced turnover of $1 million, though characterised by raw material shortages and price controls during the period. He said that for National Foods "the operating environment is tough at the moment."

Exports are expected to commence by the end of the first quarter of the 2009 financial year for the new business unit Bakaya Hardwoods.

Volumes in the distribution business declined 48 percent, "but despite that the company continued to be profitable."

Regionally business continues to grow with corporate stores rolled out in Zambia in Chawama and a further three set for opening in 2009 in that country.

The regional operations posted turnover of US$85,5 million. Meanwhile, the distribution business volumes in Zambia and Malawi jumped 25 percent.

Going forward the group expects to unlock value by backward integration and replicating the fast moving consumer goods chain in Zimbabwe regionally. Investigations are in progress in Kenya, Ghana and Malawi to that effect. Locally retention and growth of real balance sheet value will continue to be of prime focus.

No dividend was declared.

Source: THE HERALD