For over 80 years, KOO has been a trusted partner across millions of homes in South Africa. From memorable get togethers, hearty meals at funerals, plates brimming with pride at weddings or every day meal moments, KOO is a star feature.
FINANCIAL PERFORMANCE
The Culinary business delivered another year of compelling performance, with revenue up by 3.1% to R10.2 billion and operating income up by 11.4% to R1.07 billion. This performance was driven by continuous improvement initiatives of value engineering, as well as factory efficiencies, and enhanced agricultural product processing. The success of these initiatives has been underpinned by a renewed culture of operational excellence, and swift decision-making enabled by the operating model. Collectively, these initiatives offset the significant disruption in the first quarter caused by the vinegar shortage following a local supplier's production line breakdown.
We maintained a strong focus throughout the year on restoring cost leadership and driving affordability, focusing our activities and investment in our focus brands. We have prioritised opportunities for the value seeking consumer through value engineering innovations in recipes, packaging, price-pack architecture, and product value tiering. There was also significant improvement made in waste reduction and improved agricultural procurement which aided performance. We made valuable progress this year in strengthening partnerships with local farmers as part of our efforts to have greater control over our value chain, decrease dependence on imported raw materials and address regional food security challenges. Read more about this in our sustainability strategy pillar of enhanced livelihoods, and our strategic enabler sustainable agricultural sourcing.
Through our various initiatives, we achieved market share growth across condiments, baby nutrition and spreads.
To realise our growth ambitions in an increasingly competitive retail and consumer market, and deliver on our mission of bringing affordable quality products to everyone, we will be maintaining our focus on strategic pricing and providing relevant value tiering options, while driving further efficiencies across our value chain. We will continue to drive growth in general trade, as well as restore growth in exports, particularly in Southern Africa.
