Dislocations in money supply growth on the domestic front and imported inflationary pressures were major impediments within the operating environment to FY22. As a result, consumer demand slowed in the second half of the financial year as inflation accelerated, particularly in respect of high value products. Despite this, the group experienced an 8% uplift in aggregate volumes to 569,000 tons. In the period under review, the Board approved the disposal of National Foods’ 40% stake in Pure Oil and the transaction is currently underway. Volumes in the flour division slowed by 1.9%, dampened by higher international wheat prices and constraint availability locally. Maize meal volumes remained depressed at a 2.3% decline relative to the prior period largely due to muted demand that goes with a bumper harvest. In the stockfeeds segment, volumes continued to be driven by the poultry sector, rising another 12%. The down packed division reported a 31% positive shift in volumes with rice making some headway into informal sector channels whilst volumes in the cereals unit grew 35%. Additional capacity in the snacks division increased volumes by 24% whilst biscuit volumes were impacted by higher flour prices declining 3% y/y. OCF/EBITDA decreased from 53.6% in the prior year to 4.28% due to an aggressive increase in working capital changes. Overall, the group remained cash positive to FY22. The Board declared a final dividend of USc 5.95 per share and ZW$1,103 cents per share representing a 4.4% dividend yield at current levels.
