According to the companys unaudited financial results for the six months ended 31 December 2010, the stockfeeds business performed well due to outstanding product quality, effective procurement of raw materials as well as competitive pricing. Tonnage sold amounted to 64 000mt against 44 000mt in the comparative six month period last year.
The poultry industry experienced strong growth which benefited the division, read the financial results. The chairman presenting the financial results said a specialist plant to produce beef and dairy feeds is under construction in Harare and
will have a capacity of 6 000mt per month. The chairman, Todd Moyo, said the product was easily accessible to all farmers owing to multiple locations around the country.
Stock is available at over 30 locations around the country making product easily accessible to most large and small scale farmers, he said. The Bulawayo plant was closed on 1 November in 2010, with the company citing difficulties of sourcing raw materials in the Southern region after the closure of the milling plant. This has contributed towards enhancing capacity utilization of the Harare plant and reducing the operating costs of the business, said the chairman.
An overview of the financial performance of the whole group showed that the group recorded an after tax profit of $2, 9 million. Volumes sold at 165 000 metric tones were 17 percent above the comparative period as well as a 22 percent growth of revenue from continuing operations.
The better sales mix, together with improved efficiencies and effective procurement strategies, resulted in an increase in the gross profit to 26 percent, said Moyo. The flour milling plant in Bulawayo was also closed during 2010 and flour sales were 16 percent down on the comparative period. Maize meal sales grew by 41 percent to 36 000mt. In the Depot network sales volumes increased by 140 percent to 40, 700mt.
Post published in: Economy