Recent results from Innscor Corporation Limited (Innscor) their subsidiary Colcom Holdings Limited (Colcom) and associate company, National Foods Limited (Natfoods), are some to consider.
Innscor is a dominant force in the Zimbabwean Fast Moving and Consumer Goods (FMCG) industries that has made significant investment in the past few months towards the revamping of their operations.
Stockbrokers interviewed said this had raised the standard in both the fast foods sector and retail operations.
"In an economy where margins are depressed on the back of pressure from imports while local industry operates below optimal capacity the group rightly identified the improvement of controls and operating efficiencies as the major drivers of performance," a stockbroker from EFE Securities (Private) Limited, said.
"And these have been seen to filter through to the Group’s operating units including subsidiary, Colcom Holdings, where a leaner structure was adopted while automation of some operations is set to minimise operating costs and enhance margins".
He said similarly like-minded moves were implemented at National Foods Limited, Innscor’s associate company, in which extensive rationalisation was set to help consolidate company performance while the recent protectionist fiscal Policy Review Statement that reinstated duties "is certain to drive industry to raise capacities to profitable levels".
"Riding on strong brands and a gradually improving and enabling operating environment we believe there is scope for investment in the shares of the three companies," the EFE stockbroker said in an interview in Harare.
Post published in: Business