Operational review


Financial highlights



2019: R371 million




Contribution to headline earnings from continuing operations
2019: 15%


UAC Foods (49% held)

UAC Foods is a leading manufacturer and marketer of convenience foods in Nigeria, with respected brands in snacks, dairy products and beverages. The snacks category comprises Gala sausage roll, Funtime cupcakes, Funtime coconut chips, and the new Funtime Groundnut chips. The dairy category includes the Supreme range of ice-cream and yoghurt products, while the beverage category includes Swan Natural Spring Water.

UAC Foods performance was adversely impacted by Covid-19 with lower volumes particularly in the snacks and dairy segments. Lower volumes as well as higher input and distribution costs and increased promotional activity further impacted profitability.


National Food Holdings Limited (37,4% held)

National Foods is a leading branded food manufacturer in Zimbabwe. In addition to maize and flour milling, the company produces a range of food products, including stockfeed, snacks and treats, rice, peanut butter and oil.

National Foods financial results were prepared in accordance with the requirements of IAS 29 Reporting in Hyperinflationary Economies.

Volumes for the period declined by 25% compared to the same period last year.

Revenue, however, increased reflecting higher selling prices following the progressive removal of most grain subsidies. Gross margin increased by 48%, below the increase in revenue as the group focused on being competitively priced. Profit after tax increased by 75%.


Empresas Carozzí (24,4% held)

Empresas Carozzí S.A., a Chilean company with headquarters in Santiago, is one of the largest and most respected South American food producers. It has manufacturing operations in Chile, Peru and Argentina, and additional commercial branches in Ecuador and the United States. Carozzí has two main business areas: fast-moving consumer goods (and pet food), with its main markets in Chile and Peru, and agro-industrial products (business-to-business) that are sold worldwide.

The effects of the Covid-19 pandemic led to a shift in demand, with growth reported in Carozzí's basic product range (flour, rice and pasta), while indulgent categories such as chocolates, biscuits and snacks all experienced a decline in volumes. In addition, the effects of the pandemic coupled with the drought in Chile adversely impacted the agro-industrial division. This was offset in part, by solid cost control during the year.