Fast food giant, Innscor, is operating below capacity because of a shortage of flour but its food division saw sales increase by 223 percent and the company as a whole had sales of $23.8 billion in the six months to December, $5 billion more than the total sales for the year ending June when its turnover was $18.4 billion.
Sales for the first half were only $7.8 billion. Operating profit increased from $1.2 billion to $5 billion with net profit at $2.2 billion, up from $585.9 million. Net profit for the year ending June was $1.7 billion.
The company says it commissioned a new bread plant in Mutare and a second line in Bulawayo but it had to operate well below capacity because of a shortage of flour.
This posed serious viability concerns for the business. Operating margins, however, improved at the Fast Foods and Bakers Inn operations.
Sales volumes of Zapsnacks grew by 45 percent. Sales in the non-food sector in Zimbabwe grew by 107 percent.
A shrinking market saw sales of Capri products decline but exports grew accounting for 25 percent of total sales.
TV Sales and Hire also did well with a shift towards cash sales.
The tourism business was adversely affected by lack of arrivals but it still contributed positively to the company results.
The crocodile operation is forecast to produce some 38 000 skins before year end. The revenue from this will only impact on the results for the second half.
The distribution business which includes the Spar operations grew by 319 percent. Four new Spar stores were added bringing the total to 43. Johnson and Johnson was added to the company’s operations.
It has also secured exclusive rights to distribute Gillette products as well as National Brands products.
Sales for the region increased by 15 percent to US$7.7 million. All countries recorded growths except Cote D’Ivoire which has been rocked by a civil strife.
The company intends to suspend its operations in the West African country.
Its alliance with Exxon-Mobil continues to be the focus of its regional operations with 4 new sites comprising 10 counters being opened.
A further eight, two in Kenya, two in Zambia and four in Ghana are under construction and should be opened before the end of the current financial year.
Two more sites in Mozambique should be opened during the next financial year. The company has, however, taken over the operations of On the Run in Kenya.
It has closed down two marginal sites but the three additional counters being operated through the alliance have improved profitability.
A bread plant with a capacity to produce 20 000 loaves a day has been commissioned in Ghana.
Franchises have now been established in Angola and Democratic Republic of Congo. Negotiations have been concluded for shops to be set up in Senegal and Tunisia. They should open in October and November, respectively.
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