Zimbabwe Stock Exchange listed company, Innscor Africa Limited operations, says the volumes of processed chicken has normalised, but constant supply might be hampered by the acute foreign currency shortages in the country.
Zimbabwe, since February 2009, adopted a multi-currency economy with the United States dollar dominating other currency, however, there has been acute shortage of the green currency in the country since 2016 which has negatively affected the few companies that are operating in the country.
Addressing stakeholders at the Annual General Meeting yesterday, Group Chief Executive Officer, Julian Schonken, said forex shortages has also negatively impacted on the small scale sector which depend on day old chicks for production.
“The shortage is also affecting small scale sector which relies on day old chickens for production.
“Table egg productions remains at around 43% of normal capacity,” said Schonken.
He added that the introduction of family loaf was very well received by the market and accounted for 47% of total loaves sold so far.
“The business continued to invest in extending its pipeline of key raw materials to this end, working capital increased by $9.3 million during the quarter to $88.3 million and we have a good pipeline of raw materials in most of our key categories at this point,” said Schonken.
He added that revenue continued to show good growth on the back of a 13% increase in average loaves sold per day versus the comparative quarter.
“Revenue continued to show good growth on the back of a 13% increase in average loaves sold per day versus the comparative quarter.
“The performance was however negated by an increase in raw material costs compressing the gross margin dollars as the selling price to the consumer remains unchallenged.
Innscor Africa Limited is a focused group of light manufacturing businesses which produce a number of Zimbabwe’s iconic brands in the consumer staple and durable product space.