INNSCOR Hails Prevailing Exchange Rate Stability

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By Alois Vinga

DIVERSIFIED light manufacturing concern, INNSCOR Africa Limited has hailed the prevailing exchange rate stability for enabling pricing efficiency prompting the group to declare $1.10 dividend payout.

In a recent update the group’s chairman, Addington Chinake said the economic environment during the period remained relatively stable, with a marked reduction in inflation and an associated improvement in consumer and business confidence.

“The prevailing stability is mainly attributable to the successful introduction of the foreign currency auction system and Statutory Instrument 185 of 2020, allowing for improved capital allocation and pricing efficiencies across the Group’s value chains,” he said.

He said whilst these policy interventions, coupled with a prudently controlled money supply, have proven conducive for business, local liquidity remained constrained for much of the period, combined with steep lending rates, which required careful management of borrowings, and working capital.

“The board declared an interim cash dividend of $1.10 cents per share. The dividend is in respect of the financial year ending 30 June 2021 and will be payable to all shareholders of the company registered at the close of business on the 9th of April 2021,” said Chinake.

The group’s segments also registered significant volume increases, with the bakery division recording a 26% increase in loaf volumes against the comparative period.

The division has continued to display good volume recovery, which has resulted from both a reliable and consistent flour supply.

At National Foods, overall volume performance was generally strong, closing 25% ahead of the comparative period.

In the stock feed division, volumes improved by 34% over the comparative period. This encouraging result was driven by the poultry category, where volumes increased by 56%.

Volume growth in the grocery division was significant at 98% over the comparative period. The solid growth was achieved across the category portfolio on the back of competitive pricing.

“The reduced level of inflation experienced in the period under review has enabled a relatively robust trading environment, bringing about stability in pricing and encouraging consumer spending and general economic activity,” Chinake added.