National Foods explains benefits derived from its recent delisting, current investments
On January 31, National Foods officially delisted from the VFEX, a move the company initially announced in November 2024.
ZIMBABWE – Zimbabwe’s National Foods Holdings Limited (National Foods) has announced that its delisting from the Victoria Falls Stock Exchange (VFEX) will provide welcome long-term benefits to the company, particularly in light of its planned capital projects.
The primary reasons that the company gave for delisting from the VFEX included low liquidity and limited investor interest in the foreign currency-denominated stock market.
National Foods had migrated to the VFEX in December 2022 from the Zimbabwe Stock Exchange (ZSE) as part of government efforts to promote foreign currency trading and attract offshore investment. However, the company felt that the VFEX did not meet those objectives.
“We believe that, in the long term, delisting will prove to be the right decision for National Foods,” said Mike Lashbrook, the company’s CEO.
He noted that National Foods currently has several significant capital projects underway aimed at improving operational efficiency and reducing costs.
The firm has allocated US$16 million in capital expenditure for 2025, dedicated to its solar project, upgrading its Harare stock feed plant, and expanding its rice factory.
“Major investments are currently in progress, including substantial upgrades to our Harare stockfeed plant, the installation of a solar power plant at Aspindale (our largest manufacturing facility), and the construction of a rice packing facility at Aspindale. All these investments aim to lower costs and enhance our operating efficiencies,” Lashbrook explained.
National Foods also reported strong financial performance for the half-year period ending December 31, 2024, with a 25% increase in volumes compared to the same period in 2023. This growth was mainly driven by the maize and stock feed segments.
The company welcomed the recent stability in exchange rates, attributing it to the prudent liquidity management by the Reserve Bank of Zimbabwe. While National Foods accepts various payment methods, the majority of its revenue is in US dollars.
Lashbrook expressed optimism about the current agricultural season, noting that the 2024/25 period is benefiting from La Niña weather conditions, which have resulted in above-average rainfall in certain regions of Zimbabwe.
National Foods is engaged in flour and maize milling and produces a variety of products including cereals, snacks, and treats. Its portfolio of basic foods includes maize meal, flour, rice, salt, snacks, biscuits, pasta, sugar beans, baked beans, popcorn, and a new maize-based cereal.
The company’s reputable brands include Gloria Flour, Pearlenta, Red Seal, Better Buy mealie-meal, Mahatma and Mama Africa rice, Allegros Popticorn, ZapNax, and Active Nutri-Smart instant porridge.
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