Colcom targets 100% capacity utilisation

Colcom targets 100% capacity utilisation
Published: 17 April 2014
ZIMBABWE Stock Exchange-listed Colcom Holdings is targeting 100% capacity utilisation following its decision to move into the lucrative Angolan market, a company official has said.

Speaking at the Zimbabwe-Angola business association launch in Harare yesterday, Colcom Holdings national sales executive Thabang Dhliwayo said the company was currently not present on any regional market.

He said Angola would be the first regional market for the company.

"Currently we are operating between 40% to 60% capacity utilisation. Once Angola opens up for us, our capacity utilisation will move to 100%. This will reduce our fixed cost per kilogramme and enable us to be more competitive and reduce the cost of our products," Dhliwayo said.

He said Colcom had entered into partnership with distributors in Angola.
"We are not going to set up supermarkets in Angola, but we are looking at partnering with distributors in Angola. But if the opportunity arises in future and the numbers make sense then we will consider setting up supermarkets," said the Colcom executive.

He said the company has already acquired solid contacts in Luanda and Benguela.

"We hope that once we start trading consistently and getting our brand footprint strong in Angola, we should be able to use some of the extra capacity we have at our factory to service Angola," said Dhliwayo.

Colcom Holdings recorded a growth in turnover of 13% for the six months ending December 2013 despite Colcom Foods showing a 10% decline in revenue.

The Associated Meat Packers (AMP) subsidiary achieved a 103% growth in revenue over the comparative prior year period.

In terms of volumes, the group achieved an overall growth of 17% over the prior period, with Colcom Foods showing a 33% decline and AMP achieving a 115% growth over the prior period.

In a statement accompanying the group financial statement Colcom Holdings chairperson John Koumides said the decline in Colcom foods was primarily a result of the rationalisation of product lines, with the closure of the frozen pies division contributing most significantly to volume decline.

Within the pork category, processed products reflected a 5% decline while fresh pork achieved a growth of 28% over prior year's volumes.
- newsday
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