The operating environment was characterised by inflationary pressures, complex regulatory developments, and acute power shortages impacting overall business sentiment. However, currency issues notably ameliorated in the second quarter leading to relative stability and consistent pricing strategies in industry. The El-Nino induced drought saw the group relying on imports for the bulk of its commodity requirements as the local harvest faltered. Despite the change in VAT status of key goods, volumes remained robust across key segments. Under Mill-Bake, loaves sold in the Bakery division grew 5% y/y owing to improved manufacturing and pricing efficiency. National Foods volumes in the period were up 25%, mainly aided by good performances in the core milling operations. The Flour, Stockfeeds, and Maize divisions recorded growths of 18%, 22% and 68% respectively. Increase in production capacity saw volumes in the Snacks division closing 57% ahead of the prior comparative period whilst the Cereals and Pasta divisions also performed well.
