INNSCOR Africa Ltd (Innscor) has appointed Thomas Brown as the groupâ€™s new Chief Executive Officer, effective September 1, taking over from Michael Fowler.
Fowler the longest serving Innscor director was said to have been elevated to deputy chairman for the group, serving in an executive capacity.
Fowler had taken over from John Koumides last year who stepped down from the post he assumed in January 2005.
Koumides remained as a non-executive director on the board when he stepped down as group chief executive.
Brown will be in the driving seat of the company which last week announced that its turnover increased by 17,3 million % to close period under review at $49,7 million (revalued) for the interim period ending June 30, while its operating profit for the period under review increased by 27 million percent to $24,8 million (revalued).
The turnover was largely driven by the agro-processing business and fair value adjustments. The sector contributed close to 50% of turnover.
“Fair value revaluation for the group pegged at $185 million comprised mostly of adjustments to the value of livestock from Colcom Holdings and Niloticus crocodile ranching operations, contributed about $103 million,” said deputy chief executive Julian Schonken when presenting the annual results.
Schonken said the retail sector was affected by the price controls in the first quarter of the year.
Declining disposable income, power shortages and product supply constraints, “resulted in 4% decline in customer counts in fast foods and 31% decline in customer count in bakery”.
Innscorâ€™s profit before tax of $226 million is a 92 million percent growth from the same period last year.
Attributable profit for the period under review was $169,5 million, while basic earning per share increased by 94,5% to $27,83.
Associate company, Colcom, recorded a turnover of $9,7 million a growth of 23 million percent while its operating income excluding fair value adjustments surged 30 million percent to $9,6 million with local sales and exports contributing $1,9 million and $7,6 million respectively. Colcom recorded a profit after tax of $36,3 million during the period under review.
Schonken revealed that volumes at the bread company dropped 29% to 31 million loaves against 44 million previously.
He said the pricing for the commodity locally was low at about 20 US cents unlike the regional price of 50 US cents.
Fowler the new deputy chairman and Zed Koudounaris founded Innscor as a chicken shop, which in time expanded into other foods and later, entertainment.
Innscor Africaâ€™s principal activities are carried out through its retail and distribution, agro-processing, fast foods and manufacturing divisions. Retail and distribution operates fast food and retail stores, and is source for locally manufactured products to reduce reliance on imports.
Agro-processing operates three crocodile ranches for the exotic skin markets including a number of livestock related operations.
Manufacturing business comprises Bakers Inn bread plants, including confectionery for both the local and regional markets.
This division also manufactures appliances under the Capri brands. Fast foods comprise stores and franchising operations countrywide.
Going forward, the group said its will continue to explore for investment opportunities in Africa with investigations at varying stages in Kenya, Ghana and Malawi.
The groupâ€™s said local retention and growth of real balance sheet value will continue to be of prime focus in the current financial season.
Exports are expected to commence by the end of the first quarter of the 2009 financial year for the new business unit Bakaya Hardwoods.
By Paul Nyakazeya