NATIONAL Foods Limited (Natfoods) believes its turnover which increased by 3,9 million percent to $2,7 million (revalued) for the interim period ending June 30 and its operating profit which increased by 7,8 million percent to $1,7 million could have been “far much better” had it not been for price controls.
Realising how the current unstable economic environment and price controls were affecting its operation, Natfoods said it will focus on obtaining raw materials to increase its production levels.
The industrial agro-processor said it will also find sustainable methods of financing the importation of grains and oils in the current reporting season.
During the period under review, Natfood realised a profit after tax of $24 million while its basic earnings per share increased by 183 million percent to 36 cents (revalued).
Most of Natfoodsâ€™ divisions traded below previous levels a situation which saw the company leasing some of its underutilised depots.
Natfoods, one of the first beneficiaries of the Bacossi funds has scaled down its operations due to lack of raw materials, and power outages.
Natfoods manufactures mealie-meal, cooking oil and flour. Consumers have however been forced to import flour and cooking oil from South Africa.
“We do not have enough raw materials, that is our major constraint here at National Foods,” said Golden Chekenyere, spokesperson for National Foods told businessdigest recently.
“Another constrain that has been of major concern is the intermittent power outages. The disruption in power supply has been costly.
“We are running a loss every time there is a power cut. For example if the mill is running and power stops, we can lose the product or it can be affected. We lose money due to such unplanned work stoppages,” he said.
Chekenyere said the company has been battling to get raw materials from the Grain Marketing Board which is their sole supplier. â€“â€“ Staff Writer.