Colcom is a subsidiary of the major food processor and producer Innscor Corporation, which also controls the Bakers Inn, Chicken Inn, and Pizza Inn franchises in Zimbabwe.
Pie consumption last year fell by 2 percent, while Colcom revenues grew by 17 percent. The increase was due to improved volumes, although margins were squeezed by higher raw material costs and discounting effected to counter the influx of imported protein.
"Pig weights sent for slaughter improved 3 percent while factory throughput increased 12 percent on improved efficiencies," said Imara Edwards Securities.
"Volumes for the pies and canning divisions declined 2 percent and 14 percent, respectively. The business exhibits strong cash generation with $2,6 million generated from operations".
He said fast foods was a very strong cash-cow for Innscor.
"Fast foods posted a strong performance as customer counts grew 19 percent to $14,4 million on competitive pricing, improved efficiencies and new outlets being rolled out in Zimbabwe. An additional 12 fast foods counters were added during the first quarter of 2011.”
Post published in: Business Analysis