INNSCOR Africa Ltd, which recorded a turnover of $195,3 billion, says part of this was achieved because it had streamlined some of its regional operations.
T face=”Verdana, Arial, Helvetica, sans-serif”>In its unaudited financial results for the half-year ended December 31 Innscor said the reorganisation of the group’s regional activities into franchising and operations had shown positive results through management focusing on these two distinct businesses.
The group has streamlined its operations in Zambia, Mozambique, Kenya and Ghana and turnover from these operations amounted to US$7,6 million.
Exxonmobile had a strong presence in these countries and the opportunities to expand Insscor’s brands into the Exxonmobile sites would enable the group to continue building critical mass, the company said.
It said Ghana and Zimbabwe were operating profitably but overall the region reported a loss of 40 cents per share.
“During the period under review the Zimbabwe economy continued to provide enormous challenges,” Innscor said. “Management were proactive in overcoming the unstable operating environment experienced and produced a pleasing set of results. The group recorded a turnover of $195,3 billion representing a growth of 720% and operating profit of $46,3 billion representing a growth of 822%.”
The figure is however before interest, tax, depreciation and amortization.
The group’s shareholding in National Foods Ltd contributed substantially to equity accounted earnings of $12,3 billion and towards the group’s profit after tax of $40,4 billion.
The shareholding in Natfoods was increased during the year to 35,89% in November.
Weighted earnings per share of $67,17 represents a growth of 1,291% over the prior year.
Innscor said the franchising business was instrumental in opening 31 additional counters in three countries – Mozambique (four) and Ghana (25) under the Exxonmobil Alliance and a further two counters in Angola.
Altogether the franchising operations services 151 counters in Zimbabwe and 125 in the region.
The group invested significantly in working capital during the period under review and after spending $21 billion on investing activities, it had net borrowings of $13,4 billion at the end.
Innscor said the recently introduced monetary policy had the effect of stabilising the liquidity crisis faced at the end of the period under review and had positively supported manufacturing operations which were under severe burden from unsustainable interest rates experienced during the latter part of the year.
“The effect of the new monetary policy statement is a challenge for the group to return to the basics of its business models so that existing operations can adapt and become more efficient,” Innscor said in its report.
“Focus will also be placed on improved marketing, driving out unnecessary costs so that the group can be more competitive and price sensitive to the level of spending power available.”