1H21: Volumes recovery on a stabilizing currency

Margins soften on account of expected cost-creep

Despite consumer pockets still being somewhat strained within the period, the notably more stable operating environment underpinned a rebound in volumes of 25% to 264,000 tonnes h/h. Volumes for the flour division increased by 56% albeit off a low base, after two consecutive periods in the red with growth being experienced both in the baker’s and prepack flour segments. Maize meal volumes were weak at a 23% decline relative to the prior period despite expectations of strong demand due to the drought. The dip in maize volumes was credited to market adjustments that took place following the conclusion of the subsidy program, as well as intense competition from imported maize meal.