Innscor Africa Limited has delivered a stellar set of results for the year ended 30 June 2026, doubling its profit for the year to US$102.1 million and growing revenue 14 percent to US$1.239 billion, driven by resilient volumes, an improved sales mix and a strong recovery in the protein business.
In its audited results for the year ended 30 June 2026, the diversified Victoria Falls Stock Exchange-listed group reported a 57 percent surge in operating profit before financial income, depreciation, amortisation and fair value adjustments to US$151.6 million, with the EBITDA margin improving to 12.2 percent from 8.9 percent in the prior year. Profit before tax jumped 96 percent to US$133.4 million.
The strong profitability translated into shareholder returns, with basic earnings per share rising 84 percent to 13.41 US cents and headline earnings per share up 83 percent to 13.30 US cents. The company declared a final dividend of 2.15 US cents per share, up from 1.50 US cents, bringing the total dividend for the year to 4.50 US cents per share, a 53 percent increase from 2.95 US cents in 2025. The dividend will be payable on or around 6 November 2026 to shareholders registered at the close of business on 9 October 2026. Shares will trade cum-dividend up to 7 October 2026 and ex-dividend from 8 October 2026. A final dividend of US$600,000 was also declared for the Innscor Africa Employee Share Trust, bringing its total for the year to US$1.25 million.
The company’s financial position remained solid, with total assets growing 25 percent to US$991.1 million, total equity up 18 percent to US$555 million and cash generated from operating activities up 24 percent to US$155.1 million. The strong cash flow supported a significant capital investment programme of US$121.1 million, up 64 percent from the prior year, which was channelled into new bakery lines, milling capacity, protein expansion and solar energy projects.
The company reported that the operating environment was relatively stable since September 2024, supported by increased mining export earnings, an expanded agricultural output, a strong tobacco season and diaspora remittances which boosted consumer spending. Tight monetary policy, stability on the Willing Buyer Willing Seller foreign exchange platform and softening local interest rates also improved business confidence and pricing consistency.
Performance across operations was broad-based. In the Mill-Bake segment, the Bakery Division grew loaf volumes by 27 percent following the commissioning of a new automated line in Harare and will soon add another line and a 3MWp solar plant, with a further line and 2MWp solar system planned for Bulawayo. National Foods saw flour volumes up 13 percent, while downpacked volumes rose 22 percent, snacks volumes jumped 50 percent, pasta 55 percent and Nutrimaster fertiliser volumes 33 percent. Profeeds recorded a strong recovery with core stockfeed volumes up 40 percent after restoration of its Harare manufacturing base following the 2023 silo incident.
The Protein segment, comprising Colcom, Irvine’s and Associated Meat Packers, delivered a 28 percent increase in aggregate volumes at Colcom, 17 percent growth in frozen poultry and 16 percent in day-old chicks at Irvine’s, and 16 percent growth at AMP, supported by an expanding Texas Meats retail network of 45 outlets.
In the Beverage and Other Light Manufacturing segment, Prodairy volumes rose 5 percent, with strong growth in the Revive maheu and Life milk brands, while Nyathi sorghum beer volumes at The Buffalo Brewing Company surged 43 percent on new capacity. Natpak grew volumes by 11 percent.
A key development during the year was the group’s investment into Tanganda Tea Company Limited. Through its 60.07 percent-owned subsidiary Rutanhi Beverages Limited, the group underwrote an US$8 million renounceable rights offer, resulting in Rutanhi holding 28.97 percent of Tanganda effective 31 March 2026. With new board and management led by Chairman ABC Chinake and CEO C.F. Botha, Tanganda has been consolidated into Innscor and has commenced a comprehensive recovery programme focused on governance, cost optimisation and plantation rehabilitation.
The group continues to face uncertain tax positions, with ZIMRA having assessed an additional US$13.14 million for divisions and subsidiaries and US$5.15 million for associates for the period 2019 to 2021 relating to taxes already settled in Zimbabwe dollars. The group has paid US$11.9 million under the pay-now-argue-later principle and is challenging the assessments through the courts. It also paid US$5.07 million in Special Sugar Content Excise Duty during the year, bringing cumulative payments to US$15.17 million since January 2024.
Looking ahead, the company said it will focus on sustaining volume momentum, optimising the sales mix towards higher-margin categories and extracting returns from its expanded asset base. Capital expenditure of approximately US$139 million is planned for 2027, concentrated in Bakery, National Foods, Colcom, Irvine’s and the beverage businesses, while disciplined working capital management and free cash flow generation will remain central priorities.
External auditors BDO Zimbabwe Chartered Accountants issued an unmodified audit opinion, with key audit matters relating to revenue recognition, valuation of biological assets and the investment into Tanganda.
