National Foods Holdings Limited (NTFD.vx) Reports 42% Volume Increase in Third Quarter (January-March 2023)

Published On: May 16, 2023Company: National Foods Holdings Limited (NTFD.vx)
What is the outlook for the future?
The trading environment is expected to remain complex and challenging in the foreseeable future, but the Group remains optimistic on the trajectory of the economy with growth potentially driven by the key agricultural and mining sectors. Medium-term, the Group's drive to grow and broaden their portfolio continues as new plants are commissioned.

Trading Update Third Quarter (January-March 2023)

  • The Downpacked unit continued to show steady volume improvements, driven by value rice.
  • The economic environment and trading performance were marked by a hard currency devaluing at an accelerating rate and significant power supply challenges.
  • The Snacks unit produced solid volume growth, mainly in the hard snacks category.
  • The CCB (Cereals) unit witnessed a volume increase of 42%, driven by a new breakfast cereal range.
  • The Group has a project pipeline with a projected investment value of $30 million.
  • Government policy measures for the liberalization of the grain trade is of benefit to producers and consumers.
  • Volumes for the year to date at 418,000 tons declined by 5%, although after a constrained first quarter there was a recovery in the last two quarters.
  • The decline in volume was mainly in the Flour unit due to higher wheat prices globally and new players entering the market.

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About National Foods Holdings Limited (NTFD.vx)

National Foods is Zimbabwe’s largest food manufacturer. The company was established in 1920 and produces a broad range of basic foods including maize meal, flour, rice, salt, snacks, biscuits, pasta, sugar beans, baked beans, popcorn and a full range of animal feed. Recently, a maize based cereal has been added to the National Foods product portfolio. The company’s iconic and home-grown brands Red Seal, Pearlenta, Gloria, Mahatma, Better Buy, ZimGold, National Foods Stockfeeds, Iris, Zapnax, KING and most recently Allegros Popticorn are loved across the length and breadth of Zimbabwe. Gloria and Red Seal have been trusted and esteemed brands in Zimbabwe for almost a 100 years. The company has two major shareholders; Innscor Africa Limited (37.45%) and Tiger Brands (37.45%). The National Foods Workers Trust, which was established in 1985 by way of a donation, also owns 9.53% of the company. The beneficiaries of the Trust are the National Foods Ltd non-managerial employees. National Foods has manufacturing sites in Harare and Bulawayo from which it distributes its products throughout Zimbabwe. Our people work passionately to add value to the lives of our customers and consumers through our products; striving to continuously improve our existing products as well as progressively adding new categories to our portfolio.

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