Innscor records 5% turnover growth

Published: 22 November 2013

Innscor Group CE John Koumides told the AGM today that the Group recorded a 5% turnover growth in the first quarter while profitability went down 18% as Zimbabwe is in a tough and extraordinary situation at the moment.

"Overall, our first quarter has been disappointing and as a result profits went down by 18-19% on prior year.

"The turnover from the first quarter of our financial year which ended in September is up about 5% on the prior year. You will note that is a pretty similar percentage you will see from other companies, Delta and OK included.

"So it seems to be a very common percentage, showing..... what is happening in the country. The challenges are there and what is good to see is that the government is beginning to realise that these challenges exist and reality checks are coming into play," he said.

Giving a trading update, he noted that the group's margins were under pressure particularly in their Zimbabwe fast foods business.

"But this was by design, as you know from last year that we've been pretty aggressive on pricing.... We had large increases in customer counts last year and that growth continued this year," he added.

Regional fast foods recorded an increase of 5% in turnover and during the quarter they opened four new counters in Kenya while 17 outlets were in various stages of completion by end of September and all of these will open by the second quarter.

He told the meeting that the group's borrowings did not increase in the first quarter.

The group's directors were re-appointed and fees of $29 773 approved while auditors Ernst and Young were re-elected with remuneration of $142 824 also approved.

- zfn

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