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Innscor profits tumbles

by Reuters
26 Sep 2015 at 17:09hrs | Views
Zimbabwean fast food group Innscor Africa on Friday reported a 7.8 percent fall in full-year operating profit and lower revenue due to weak consumer spending, but said it plans to make cash-generating acquisitions.

Innscor's operating profit for the year-ending June was $60.7 million, down from $66 million a year ago, while revenue also fell to $814 million from $871 million previously.

Headline earnings per share totalled 3.48 cents, down from 4.11 cents. Headline EPS, the most widely watched profit gauge in Zimbabwe, strips out certain one-off items.

Innscor plans to cut costs and improve margins to ride through a tough trading environment expected in the next financial year, Innscor chairman Addington Chinake said.

Zimbabwe's economy is expected to grow 1.5 percent this year, half the initial official forecast, but some economic analysts say the southern African country could tip into recession as it battles weak commodity prices and drought.

"Notwithstanding the tough trading environment, the group will continue to procure strategic acquisitions," Chinake said in a statement.

In the first half of the 2016 financial year, Innscor will separately list its restaurant arm, which comprises in-house brands Chicken Inn and Pizza Inn and Nandos and Steers franchises, Chinake said.

Source - Reuters