Col­com chair Koumides steps down

Chronicle (Zimbabwe) - - Business Chronicle -

COL­COM chair­man Mr John Koumides is step­ping down from his role at the listed meat pro­ces­sor and is poised to take up an “ex­ec­u­tive po­si­tion” at Axia Cor­po­ra­tion.

Col­com CEO Mr Con­stan­tine Tu­ma­zos told the com­pany’s share­hold­ers on Fri­day:

“The chair­man has in­di­cated his in­ten­tion to re­sign from the Col­com board to take up an ex­ec­u­tive po­si­tion in Axia Cor­po­ra­tion. We would like as a board and com­pany to thank him for his con­tri­bu­tion.”

Col­com is ma­jor­ity owned by con­glom­er­ate Innscor Africa Hold­ings, and Axia Cor­po­ra­tion is a prod­uct of the re­cent un­bundling of the same group spe­cial­is­ing in the spe­cialty re­tail, dis­tri­bu­tion and lo­gis­tics sec­tors.

Com­ment­ing on his exit as Col­com chair­man Mr Koumides lauded the per­for­mance of the com­pany.

“When I joined the Innscor Group, the first big ac­qui­si­tion we made was Col­com and I think it was the best ac­qui­si­tion we ever made . . . Col­com is one of the shin­ing lights on the stock ex­change and I am glad that the share price is start­ing to re­flect that re­sult, the fact that it has dou­bled more or less in the last cou­ple of months is tes­ti­mony to what the chief ex­ec­u­tive has done,” he said.

Mean­while, the meat pro­ces­sor has recorded an im­proved per­for­mance dur­ing the first quar­ter of FY2017, with rev­enue be­ing “slightly ahead” of that re­ported in the prior com­pa­ra­ble pe­riod.

Man­age­ment has at­trib­uted this to in­creased vol­umes traded. The CEO, how­ever, said the rise in rev­enue did not have a ma­te­rial im­pact on gross profit for the pe­riod un­der re­view.

“The in­creased rev­enue did not di­rectly trans­late to in­creases in gross profit dol­lars due to the re­duc­tion in av­er­age sell­ing prices. This re­duc­tion came about pri­mar­ily from a di­rect re­duc­tion in prices of prod­uct across the whole range of prod­ucts over the prior year pe­riod but has been com­pounded by a sig­nif­i­cant shift in sales mix from pro­cessed foods to fresh meat and car­cass sales,” said Mr Tu­ma­zos.

Dur­ing the quar­ter, Col­com saw all its busi­ness units achiev­ing mod­est sav­ings in op­er­at­ing ex­penses over the same pe­riod last year.

In terms of op­er­a­tional per­for­mance, sub­sidiary Triple C Pigs’ sec­ond phase of devel­op­ment came on line in ear­lier in March and added 150 pigs per week to pro­duc­tion, which saw a 34 per­cent rise in pigs de­liv­ered in the cur­rent quar­ter com­pared to the same pe­riod in 2015.

Col­com Foods’ vol­umes were up on prior year. How­ever, man­age­ment re­ported that com­pet­i­tive pric­ing into the mar­ket and a sig­nif­i­cant shift in sales mix has held back the growth in rev­enue to “mod­est levels.”

AMP’s rev­enue dur­ing the pe­riod was slightly be­hind that re­ported in the com­par­a­tive quar­ter last year, while vol­ume in­creases were negated by de­pressed beef prices.

Mr Tu­ma­zos said de­spite cost con­trol mea­sure be­ing un­der­taken dur­ing the pe­riod, pres­sure on mar­gins has had a di­rect im­pact on the bot­tom line.

Go­ing for­ward, the com­pany ex­pects to ex­tend the AMP branch net­work by open­ing Texas Meats branches in Gweru and Mutare in the cur­rent fi­nan­cial year. — BH24

Col­com CEO Mr Con­stan­tine Tu­ma­zos

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.