National Foods FY 2020 net profit up 75 percent

ZIMBABWE’S largest foods manufacturer, National Foods Holdings Limited, recorded a 75 percent jump in inflation adjusted net profit to $1,6 billion for the year ended June 2020 on the back of an increase in revenue.

A 52 percent surge in revenues driven mainly by higher product prices was despite a 25 percent slump to 456 000 tonnes in volumes sold.

“Revenue, however, increased by 52 percent to ZWL$12,79 billion, reflective of higher selling prices following the progressive removal of most grain subsidies,” chairman Mr Todd Moyo said.

The slump in volumes was recorded across the company’s units from maize milling, stock feeds, groceries, snacks and treats to cooking oil.

The company declared a dividend of 445,71 cents per share, which took the total dividend for the year to 532,18 cents per share.

Basic earnings per share were up 75 percent to 2 320,63 cents.

Mr Moyo said the company would continue to invest in its manufacturing facilities to improve efficiencies and lower costs.

“The management and funding of raw material pipelines remained a key priority, both in view of the constrained local liquidity as well as the extended lead times brought about by the Covid pandemic,” he said.

“As a result of these efforts, the group currently has adequate pipelines of all key raw materials to trade sustainably in the year ahead.”

National Foods Holdings is the producer of household brands such as Gloria flour, Red Seal and Pearlenta mealie-meal, Mahatma rice, ZimGold cooking oil, and snacks such as Zapnax and Popticorn.

The firm has Innscor Africa Limited with a 37,73 percent and Tiger Brands of South Africa with 37.45 percent shareholding respectively as its two major shareholders. — New Ziana