Group CEO Theo Kumalo said the group undertook a restructuring exercise which saw the Canning and Pies units being placed under the manufacturing division. These units previously operated independently with their own CEOs, which was very costly.
The grain procurement division was also restructured as Triple C is now able to procure its own grain directly from the farms.
“We are now a leaner and smaller team which makes communication easier,” added Kumalo.
Operating margins tapered by 50 basis points to 14,4% as a result of utility increases, inefficient production facilities and a firming South African rand. Operating income grew by 6% to US$6,6 million. Inventory amounted to US$6,5 million made up of maize, meat stocks and packaging consumables.
The group had US$4,2 million debtors on its books, net of bad debts of US$293 000 and the finance director said management was fairly comfortable with that level.
Colcom invested US$1,2m in new technology aimed at improving the efficiencies of the businesses. Kumalo said the group is currently installing an automatic feeding system at Triple C which will be able to feed pigs even at night.
Pork division remains the lifeline of the group contributing 85% of revenue and 95% of pre-tax profits. Beef weighed in with 12% to revenue and only 5% to profit before tax while the grain unit contributed 3% to the top line and loss before tax of 1%.
Post published in: Business