National Foods H1 2023 sales increased by 8% to US$167m

Published On: May 4, 2023By Tags: Southern-Africa

Despite rising input prices (caused by the Ukraine war) and declining demand, National Foods H1 2023 sales increased by 8% to US$167 million, demonstrating the Group’s strong business fundamentals and strategy.


  • H1 2023 working capital remains stable at US$40m.
  • Earnings for H1 2023 ended at US$5.9 million as contrasted to US$9.4 million year prior, a 37% decrease due to higher wheat and input costs which reduced operating profits, rising finance costs and FX losses, and a decline in associate income.
  • Operating margins declined to 7.3% from 9.7% year prior.
  • Low long-term debt as indicated by a 3.4 times interest cover ratio.

Investor Issues

    Successful trading by National Foods in H1 2023 bodes well for when commodity prices stabilize, Zimbabwean inflation declines, and operating margins resume normal levels.

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About the Author: Hartland-Peel Africa Equity Research

Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.