FINANCIAL services firm Inter Horizon Securities (IH Securities) is projecting a 15,3% revenue increase for Innscor Africa Limited, forecasting the diversified conglomerate’s turnover to reach US$1,25 billion by June 2026, buoyed by ongoing capital projects and a supportive operating environment.
The upbeat outlook follows a strong performance in Innscor’s financial year ended June 30, 2025, during which revenue rose 19% to US$1,08 billion, while cash generated from operations increased by 19,8% to US$104 million.
As a result, the group’s balance sheet strengthened, with total assets rising 9% to US$792,06 million, underscoring its sustained investment and expansion drive.
Last month, Innscor announced plans to invest nearly US$81 million in new capital projects during the current financial year, aimed at deepening its product portfolio and enhancing operational efficiencies.
In its analysis of the group’s performance, IH Securities cited a favourable macro-economic backdrop as a key growth driver.
“The La Niña weather pattern has brought more positive rainfalls in the 2024/25 farming season, which has seen various sectors such as dairy, tobacco, and food security crop production posting significant gains. As such, households are expected to benefit from higher incomes through sales of surplus food crops and increased trading activity,” the firm stated.
“This, combined with the windfall in the gold sector, is expected to prop up aggregate demand. On the supply side, the government has started reviewing production charges with the intent to ease the cost of doing business.”
IH Securities also highlighted several ongoing projects that will underpin growth in the 2026 financial year.
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“Whilst the group has already undertaken the bulk of their extensive capacity upgrades, projects underway in the financial year 2026 (FY26) include modernising Stockfeeds, as well as the establishment of a roof solar plant at Aspindale, contributing to cost savings at the critical factory site,” the firm said.
Additional production capacity at The Buffalo Brewing Company is expected to come on stream during the year to meet growing market demand.
In the Mill-Bake segment, upgrade initiatives at the Bulawayo and Harare plants are projected to boost throughput and volumes, strengthening topline performance.
“In the Mill-Bake segment, it is expected that additional upgrade initiatives at the Bulawayo and Harare plants will result in enhanced throughput, in turn contributing to volumes in FY26, which will support topline performance,” the firm said.
“On this backdrop, we forecast that Innscor will see revenue growth of 15,3% in the current year to US$1,25 billion. In the protein segment, the long-term pig production expansion will give upside to volume performance.”
However, the firm cautioned that regulatory pressures remain a risk to short-term profitability.
This follows Innscor’s disclosure that it was assessed additional taxes amounting to US$13,39 million by the Zimbabwe Revenue Authority as of June 2025. The group also paid US$10,1 million in sugar tax during the same period.
Despite these headwinds, IH Securities expects a gradual recovery in margins.
“Under Irvines, margins are expected to make a modest recovery in the year guided by continued management interventions. As such, we anticipate earnings before interest, taxes, depreciation, and amortisation margin at group level to notch up from 8,9% to 9,4% on account of a gradual improvement in efficiencies,” it said.
“As per the group, focus will continue to be on further optimisation of the underlying business models, delivering targeted return from recently installed investments, and free cash flow generation.”
