NATIONAL Foods Holdings Ltd (National Foods) has set aside $7,2 million in the forthcoming year for capital expenditure projects in accordance with the group’s long term improvement plans, an official has said.
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The group’s chairman Todd Moyo said the company invested $3,6 million on completed capital projects in the year ended June 30 with a further $3,2 million of approved capital expenditure projects that will roll over into the next financial year.
“The group has investigated potential investments into a number of new categories with the objective of generating increased contribution off the existing services platform. The activation of these opportunities will be a key priority in the coming year,” Moyo said.
He said the group at stockfeeds division completed the commissioning of a new pelleting machine, installed moisture addition equipment to reduce moisture loss and homogenise product quality.
Following extensive research, Moyo said the group decided to renovate the existing flour milling sites in Harare and Bulawayo in preference to establishing Greenfield sites.
Moyo said the scope of work required to upgrade their mills to the desired standard has been completed and the rectification process commenced and “we expect to realise considerable efficiencies in the next three years as a result of these investments”.
He, however, said the small-scale poultry sector continued to grow quickly and they had lost market share in this key market segment as they failed to adapt their offering to the rapidly evolving requirements of the market.
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The group’s profit for the year ended June 30 surged by 20% to $16,7 million from $13,9 million recorded prior year on the back of increased sales volumes.
