The company commissioned a new world class sausage-packaging plant towards the end of the period under review and as a result, the new product lines increased pork sales by 20%.
Operating profit increased to US$3,7 million from US$3,4 million, with profit margins increasing to 14,7% on the back of increased factory throughput. Profit after tax was US$2,7 million, which pushed basic-earnings-per-share up by US65 cents to US1,59 cents during the period.
The group spent a total of US$2 million in capital expenditure. Of the US$2 million, US$1,6 million went into technology upgrade and expansion projects that the group started in the prior year.The company said breeding at Triple C remained high, helped by a genetics renewal programme.
Colcom said it relied heavily on imported stockfeeds, a development that ensured adequate supplies for the group in the period.
Management hopes the full impact of the investment will be felt in the second half of the year.
Volumes at Associated Meat Packers grew 48% in the period, the company said. Freddy Hirsch Zimbabwe, the group’s cold foods division, also contributed meaningfully to the overall results.
The group hopes its investment in equipment and systems will enhance production capacity and provide it with a solid position in the market.
Colcom declared an interim dividend of US0,53 cents per share. –– Staff Writer.