The operating environment in FY22 proved turbulent in the face of inflationary pressures emanating from Ukraine/ Russia war and increasing currency instability within the second half of the financial year. As a result, the group experienced supply side challenges in the form of increased freight costs and delays in procuring inputs and capital expenditure goods. Growing demand from the informal market and improved product mix helped boost double digit volumes growth for most of the Group’s segments. In the mill-bake segment, annual loaf volumes were 19% over the comparative year aided by improved loaf quality, and a renewed focus on the sales and distribution functions. Aggregate National foods volumes grew 8% y/y, whilst Profeeds volumes increased 15% with an encouraging performance from the relatively new fish feed category. In January 2022, the Administrative Court overturned the Competition and Tariffs Commission’s directive for the Group to disinvest from Profeeds, but the CTC has since appealed the judgement to the Supreme Court. In the protein segment, Colcom volumes grew 11% y/y whilst Day old chicks and Frozen chicken units under Irvines grew 25% and 17% respectively. The AMP group recorded growth across all categories to 16%. In other light manufacturing and services, investment into capacity initiatives paid off with strong growth shown across all the units. Management were on record saying indicative revenue in USD was circa US$700mn with a net profit of US$90mn for the period under review. EBITDA margins in real term increased by 3.6 percentage points whilst net operating cashflow to EBITDA came in at 22% relative to 52% in FY21. A final dividend of USc1.56 cents per share was declared representing a dividend yield of 3.96%.
