National Foods feels competition pinch: Maize milling division volumes drop

NATIONAL Foods says its maize milling division has recorded a 28 percent decline in volumes due to increased competition on the local market.

In its financial statement for the half year ended December 31, 2016, the agro-processing firm said the increased scale of Government supported supplies of subsidised maize substantially dampened demand for maize meal.

“The maize division had a very challenging period with volumes 28 percent below last year . . . In addition, millers competed aggressively on price for the diminished market, which caused a material reduction in margins.

“Consequently, the business registered a $1,5 million loss before tax in the six-month period ended December 31, 2016,” it said.

The group said regional availability of maize remained tight and is expected to continue until the next harvest season, which is expected to start next month.

It said the next harvest looks promising locally as well as across the region following the excellent rains received.

During the period under review, National Foods said its revenue declined by 3,5 percent compared to the previous period while difficulties in the maize business and general pricing restraint led to gross margin reducing by 9,3 percent.

The group’s financial position remained healthy with net borrowings of $1,8 million as at December 31, 2016.

“Net working capital closed the year at $48,83 million versus $46,25 million for the prior year. As is normally the case at this time of the year, the group elected to carry stocks of certain key raw materials at the close of the period.

“The business remained well positioned to fund its growth ambitions as well as continued dividend flow to its shareholders,” it said.

National Foods’ other divisions such as flour milling, the moving consumer goods (MCG), and oil division recorded significant performance during the period under review.
“The flour division produced a solid result for the period with volumes increasing by 16 percent as compared to last year.
“The growth emanated from the baker’s flour category and in particular strong demand from all of the major plant bakers who are now sourcing all of their flour requirements locally.
“The MCG division produced a significantly improved result, driven by rice volumes, which increased by 54 percent and Red Seal salt, which maintained its market leading position,” it said.
National Foods holds a 40 percent stake in Pure Oil Industries and its results are equity accounted.
“The business produced an excellent set of results for the period with revenue increasing by 138 percent over the prior period,” it said adding that the stock feeds division produced a reasonable performance for the period.
The stock feeds division’s volumes declined by three percent compared to the prior period, with most recent data from the Stockfeed Manufacturers Association showing nationally that feed volumes manufactured declined by 11 percent for the second half of 2016 compared to the same period in 2015. Capital expenditure for the period amounted to $2,1 million.
The group continues to support local farming with 5 800 hectares of maize, wheat and soya beans having been planted through its scheme.
“In addition to this, Pure Oil Industries launched soya bean contract farming scheme for the 2016/17 season where the production of 1 300 ha of soya beans has been supported through the provision of inputs to contracted farmers,” it said. —

Share this:

Arts & Entertainment

Arts & Entertainment

Damian Marley’s deep love for Africa

24th May 2017 Staff Reporter 0

Damian Marley’s 2010 collaboration album with Nas, Distant Relatives is littered with references to Africa’s rich cultural background. During the recording of the album Marley and Nas dug through archives of African music in search […]

9 Comments on National Foods feels competition pinch: Maize milling division volumes drop

  1. Someone In some cases together with appointments your web site on a regular basis and also proposed that to me to learn because well. That this technique of creating is wonderful and that this article is definitely top-notch خرید apple id. Thanks for the perception you give away the fact that audience!

  2. Someone automatically assist to create critically blogposts I’d express persian tar. This can be the very first time My partner and i went to your website web page and as much as currently? My partner and i stunned with the evaluation you made to create this particular posting astounding. Amazing process!

  3. unquestionably like your web page however you have got to look at the transliteration upon many of one’s articles.. خرید سرور مجازی A variety of them are usually filled with spelling difficulties and that i in discovering it quite disturbing to express to reality on the other hand Let me certainly arrive just as before just as before.

  4. Excellent site right here! In addition your blog quite a lot up really quick! What exactly service provider are you currently using? Am i allowed to make your online web page link for ones host? I wish this site filled as rapidly when your own property hehe

  5. You could possibly definitely call at your competencies inside the function you write. The world desires much more fervent freelance writers such as you that will not be fearful to note the direction they believe. Continually adhere to the heart سرور مجازی امریکا.

  6. I really like, contribute to I found precisely what I used to be seeking. You’ve finished my own four morning extended hunt! Goodness Bless you male. Employ a wonderful working day. L8rs

  7. Really good post. I just came across your web site plus wished to claim that We have genuinely loved checking your site threads. In the end We are subscribing with your feed exactly what wanting you’re once more rapidly!

  8. Many thanks for the great writeup. The item in fact had been your leisure accounts that. Appear sophisticated for you to additional extra flexible of your stuff! Even so, the way may possibly all of us sustain your messages?

  9. We’ve find out several fantastic things right here. Unquestionably value social bookmarking with regard to returning to persian backgammon. I shock just how much efforts you add to create the sort of wonderful educational web-site.

36 Trackbacks & Pingbacks

  1. Google
  2. Stroker Kit
  3. penis pump
  4. szybkie chwilowki
  5. kanger
  6. healthy recipes images
  7. forex live signal
  8. Best Budget Gaming Mouse
  9. wireless microphone headset for fitness
  10. iran tar
  11. g vibe
  12. buy dildo
  13. Buy Phentermine Without Prescription
  14. Cheap Youth Fitted Hats
  15. 韓国エスコートアガシ
  16. Arduino shields
  17. apps for pc
  18. 福井脱毛
  19. Cheap New York Giants Jerseys
  20. خرید سرور مجازی
  21. 美女的誕生dvd
  22. cash
  23. best kona
  24. Decoden
  25. http://www.motupatlugameshd.com
  26. sex problem
  27. Adam \u0026 Eve Sex Toys
  28. Best Mechanical Keyboard,Mechanical Keyboard
  29. Sex Toys Online
  30. how can i make money
  31. double penetration
  32. email database
  33. Make Money Online
  34. leginy
  35. sex toys cleaner
  36. pink rabbit sex toy

Leave a Reply

Your email address will not be published.


*