Innscor Africa : 2022-10-28 Innscor Results - 2022 June

INNSCOR AFRICA LIMITED

Audited Abridged Group Financial Results

FOR THE YEAR ENDED 30 JUNE 2022

Our passion for value creation

Salient Features

INFLATION-ADJUSTED

30 June 2022

Audited

ZW$'000

Revenue	 49%	290 780 098
Operating profit	 251%	87 832 938
Profit for the year	 350%	53 689 913
Basic earnings per share (cents)	 421%	6 835.78
Headline earnings per share (cents)	 387%	6 335.97
Cash generated from operating activities	 145%	60 878 632

HISTORICAL

30 June 2022

Supplementary

ZW$'000

• 183% 159 575 763
• 242% 38 867 983
• 338% 45 967 293

 371%	5 949.70
	331%	5 418.77
	47%	8 647 252

again advised to exercise caution in the interpretation and use of these Group annual inflation-adjusted financial statements as noted earlier in this Statement.

The Group recorded revenue of ZW$290.780bn during the financial year under review, representing a 49% increase on the comparative year. Revenue growth was underpinned by strong sales volumes across all core categories as the Group's business units achieved improved capacity utilisation, introduced new products, and expanded product offerings across existing categories; this combined with optimal pricing strategies and growing demand from the informal market drove the Group to achieve a pleasing result.

category. This product is fully imported and, in response to growing local demand, board approval has been granted for an exciting new investment into a pasta manufacturing line which will see production being localised; it is expected that this project will commission late in 2023.

Volumes improved in the Snacks division, with a 24% increase recorded over the comparative year, on the back of the commissioning of increased production capacity during the year under review. Further production capacity enhancements will continue into the new financial year, whilst work to broaden the product portfolio continues, with the recent launch of the new "Sesame Snax" range under the increasingly popular "Allegros" brand.

DIRECTORS' RESPONSIBILITY

The Holding Company's Directors are responsible for the preparation and fair presentation of the Group's consolidated inflation-adjusted financial statements, of which this press release represents an extract. These abridged Group financial statements are presented in accordance with the disclosure requirements of the Zimbabwe Stock Exchange ("ZSE") Listing Requirements, and in accordance with the measurement and recognition principles of International Financial Reporting Standards ("IFRS") and in the manner required by the Companies and Other Business Entities Act (Chapter 24:31).

The principal accounting policies applied in the preparation of these inflation-adjusted financial statements are consistent with those applied in the previous annual financial statements. There is no impact arising from revised IFRS, which became effective for the reporting period commencing on or after the 1st of January 2021 on the Group's abridged inflation-adjusted financial statements.

CAUTIONARY STATEMENT- RELIANCE ON ALL FINANCIAL STATEMENTS PREPARED IN ZIMBABWE FROM 2019-2022

The Directors would like to advise users to exercise caution in their use of these Group abridged inflation-adjusted financial statements due to the material and pervasive impact of the technicalities brought about by the change in functional currency in February 2019 and its consequent effect on the usefulness of financial statements from 2019 through to 2021, and which have resulted in carry-over effects into the 2022 financial year reporting period.

Whilst the Directors have always exercised reasonable due care, and applied judgements that they felt were appropriate in the preparation and presentation of the Group's annual inflation- adjusted financial statements, certain distortions may arise due to various specific economic factors that may affect the relevance and reliability of the information that is presented in economies that are experiencing hyperinflation, as well as technicalities regarding the change in functional and reporting currency.

2022 FINANCIAL YEAR ADVERSE AUDIT OPINION

As in the prior year, due to the existing foreign exchange market complexities, the inability to source any meaningful amounts of foreign currency from the Reserve Bank of Zimbabwe ("RBZ") Foreign Exchange Auction System, and in order to provide users with what was considered to be the best possible and practical reflection of the Group's performance and financial position, the Group utilised estimated exchange rates in order to translate its foreign currency transactions and balances in its annual inflation- adjusted financial statements for the year ended 30 June 2022 prepared under the historical cost convention.

The principles utilised in estimating the exchange rates applied for the current year under review were identical to those applied in the prior year.

In the prior year, Deloitte was in agreement with the Group that there was a long-term lack of exchangeability of the foreign exchange within the Zimbabwean market. Accordingly, Deloitte accepted the use of an estimated exchange rate as an appropriate rate to use for translation of foreign exchange transactions. In the current year, as the RBZ has continued to make foreign exchange available on the auction system and introduced the willing buyer willing seller rate, Deloitte has concluded that there is a temporary lack of exchangeability of foreign exchange and therefore the official published rate (official spot rate) should be used to translate these foreign exchange transactions.

As noted above, the Board believes that the estimated exchange rates utilised at the time a foreign currency transaction occurred or in the foreign currency translation process provides users with the best possible and practical reflection of the Group's performance and financial position for the year ended 30 June 2022, and were it to follow the external auditor's interpretation of IAS 21, then the Group's performance and financial position would have been materially mis-stated.

The external auditors, Deloitte, have therefore issued an adverse audit opinion due to the fact that the Group did not utilise the RBZ published interbank rate of exchange prevailing at the time the foreign exchange transaction occurred or at the time that the foreign balance was translated. It is worth noting, in this context, the 72% devaluation in the RBZ interbank rate from US$ 1 = ZW$366.26 at 30 June 2022 to US$ 1 = ZW$ 629.52 at 21 October 2022.

IAS 29 (FINANCIAL REPORTING IN

HYPERINFLATIONARY ECONOMIES)

IAS 29 provides that inflation-adjusted financial statements are the entity's primary financial statements, and the Group has complied with this requirement for these abridged inflation- adjusted financial statements. The Consumer Price Index ("CPI") was applied in the preparation of the hyperinflation

financial statements in accordance with IAS 29, and under the direction of the Public Accountants and Auditors Board ("PAAB").

Due to the prevailing distortions in the economy, and the material and pervasive effects that these can have in the application of the methodologies inherent in IAS 29, the Directors advise users to exercise caution in the interpretation and use of these Group annual inflation-adjusted financial statements. Due to the foregoing, financial statements prepared under the historical cost convention have been presented as supplementary information.

EXTERNAL AUDITOR'S STATEMENT

These abridged Group annual inflation-adjusted financial statements should be read in conjunction with the complete set of the Group annual inflation-adjusted financial statements for the year ended 30 June 2022. The Group's annual inflation- adjusted financial statements have been audited by Deloitte, who have issued an adverse opinion as a result of their view that the Group has not complied with the requirements of IAS 21 as noted above. The Auditor's Report on the Group's annual inflation-adjusted financial statements, from which these abridged Group annual inflation-adjusted financial statements are extracted, is available for inspection at the Company's registered office. The external auditors have not audited this Press Release.

SUSTAINABILITY REPORTING

As part of our commitment to ensuring the sustainability of our business and stakeholders, the Group is utilising ISO 26000 as guidance for Social Responsibility and continues to apply the Global Reporting Initiative ("GRI") protocol for overall sustainability. Over the years, the Group has aligned its sustainability reporting with Sustainable Development Goals ("SDGs"), demonstrating the Group's commitment and contribution to sustainable development within the environments in which it operates. The Group continues to strengthen its practices and values across its operations to ensure that long-term business success is achieved in a sustainable manner.

OPERATING ENVIRONMENT AND OVERVIEW

The operating environment became increasingly turbulent during the financial year under review with the second half, in particular, being characterised by significant inflationary pressure and currency instability. The uncertainty felt across international commodity markets, a consequence of the ongoing conflict in Eastern Europe, also negatively affected local business sentiment, with supply-side disruptions giving rise to imported inflation across many commodity classes.

In response to the unfolding inflationary pressures, several monetary policy interventions, particularly in respect of local currency interest rates and money-supply management, were introduced at the end of the financial year under review, and despite the resultant short-term softening of consumer demand, these interventions have, for now, achieved the desired result of stabilising the local trading environment. The Board encourages the Authorities to "stay the course" and remove the remaining legal and practical distortions in the area of corporate taxation;- including addressing the confusing and unnecessarily punitive Tax regime which has the undesired impact of unfairly punishing formal businesses both in terms of transaction costs and effective taxation levels.

Notwithstanding the challenging trading conditions, the Group registered positive, and extremely pleasing, volume growth across all core businesses versus the comparative year. This was achieved on the back of a sustained focus on diversifying and expanding product portfolios, implementing affordable pricing policies, and employing efficient route- to- market strategies; all of which were further supported by ongoing investment into enhanced manufacturing capacity and capabilities.

As previously reported, the erratic rainfall patterns experienced during the 2021 summer agricultural season impacted negatively on local production levels of key commodities such as maize and soya. Shortfalls in local production of these key raw materials will need to be made up with imported product in the financial year ahead; the Group has implemented appropriate strategies to manage both logistics and product input costs in this regard.

The current winter wheat plantings are indicated to be of record proportions, which should position the country favourably as regards sustainable flour supply, and a reduced import burden on the fiscus. The Group's considerable contract growing schemes remain a critical focus area in securing raw material input, and in support of Government's ongoing endeavours to rebuild local agricultural capacity.

FINANCIAL PERFORMANCE

In terms of IFRS and ZSE regulatory directives, the Group is required to provide financial commentary on the Group's annual inflation-adjusted financial statements; users are once

Inflation-induced distortions became increasingly prevalent during the latter part of the year, reflected in the profit percentages increasing significantly.

The Group's improved sales volumes and product mix, coupled with a well-priced strategic raw material investment and enhanced production and overhead efficiencies, combined to deliver an operating profit of ZW$87.833bn for the year under review, representing a growth of 251% over the comparative year.

The net gains from the continued disposal of the Group's non- core businesses were recognised under financial income, whilst fair value adjustments on biological assets were also reflective of the inflationary distortions prevalent in the market during the year under review, with fair value adjustments on listed equities following a similar trend.

The net interest charge for the year of ZW$7.579bn was 75% above that of the comparative year, and representative of elevated interest rates and higher ZW$-denominated loan values.

The Group's equity accounted earnings of ZW$8.167bn continued to contribute positively to the overall Group results and showed growth of 43% against the comparative year.

After accounting for a monetary loss of ZW$23.230bn, consolidated profit before tax for the year of ZW$70.272bn was recorded; this represented a growth of 250% against the comparative year.

The Group's Statement of Financial Position remained robust, with a strong asset base supported by fixed assets and inventory positions and minimal net gearing at year-end. The Group's free cash generation was good, following strong operational cash flows during the latter part of the year to support the ongoing expansion capital expenditure programme.

OPERATIONS REVIEW

MILL-BAKE

This reporting segment contains the Group'sBakery Division, National Foods, and the Group's non-controlling interest in Profeeds.

A pleasing growth in annual loaf volumes of 19% over the comparative year was recorded in the Bakery Division, on the back of improved loaf quality, and a renewed focus on the sales and distribution functions. The operation was re-structured in the final quarter of the financial year into its core components of manufacturing, sales, and distribution, and the Group is confident that this will further improve loaf quality, enhance production efficiencies, and allow for significantly improved market-reach.

Investment is well underway at a US$25mn, new world-class, fully automated manufacturing facility in Bulawayo, and this site is expected to be operational before the end of the 2022 calendar year, whilst further plant automation enhancements will follow in the Harare plant; additionally, a distribution vehicle re-fleeting programme is now also in progress.

At National Foods, volumes grew by 13% on an overall basis over the comparative year, driven by solid performances in the Stockfeeds, Down-Packed, Traded Goods, Snacks and Biscuit divisions.

Within the Flour Milling division, volume growth was muted against the comparative year, primarily as a result of constrained local wheat supply and cost-push pressure emanating from higher international wheat pricing.

The Group continues with its considerable local contract farming schemes, and in support of this, a new flour mill is currently being installed in Bulawayo, with final commissioning expected to occur early in the new calendar year. This investment will result in increased production capacity, enhanced product quality and a significant improvement in overall manufacturing efficiencies.

Volumes within the Maize Milling division closed largely in line with the comparative year, although there was some improved momentum toward the final quarter; demand in this division remains largely influenced by the preceding local maize harvest.

In the Stockfeeds division, volumes increased by 12% over the comparative year, bolstered by firm demand across the poultry sector, although improved pasture availability negatively affected some of the smaller beef feed categories. The operation continues to invest in various plant automations in pursuit of further manufacturing optimisation.

Volumes in the Down-Packed division, primarily constituting rice and salt, saw encouraging growth of 31% over the comparative year. Rice volume growth was driven by the informal sector, whilst Red Seal salt remained the brand of choice for consumers.

The Traded Goods division recorded volume growth of 34% versus the comparative year driven largely by the pasta

In the Biscuit division, volumes were similar to those recorded in the comparative year, with demand being impacted by higher flour pricing in the latter part of the period under review. Investment into a new, state-of-the-art biscuit line has been approved, and this will provide considerable production capacity increases, a significant improvement in product quality and operating efficiencies, and will allow for an extension of the product portfolio; this plant is expected to be commissioned within the next twelve months.

Volumes in the Cereals division grew by 35% against the comparative year driven by the ever-popular "Pearlenta Nutri- Active" range of instant maize porridge; other exciting product additions introduced during the period included "Better Buy Soya Delights" as well as the "Smart Carbs" range of instant breakfast cereals, developed with the health- conscious consumer in mind. An additional production line has recently been commissioned; this line will provide both additional capacity and capability, and will allow for product extension into the full breakfast cereal range.

At Profeeds, stock feed volume performance closed 15% ahead of the comparative year, whilst sales of day-old chicks grew 39% over the same period, driven by sustained demand, particularly across the poultry sector. Expansion of the manufacturing platform is currently underway through the establishment of a new plant in Bulawayo; this project will be completed during the course of the new financial year, and is expected to enhance production and distribution efficiencies to the Country's southern markets.

The fertiliser category, operating under the "Nutrimaster" brand, recorded excellent volume growth of 152% over the comparative year as the business executed on a firm order book ahead of the 2021 summer cropping season, and further supported via the recent 2022 winter wheat plantings. Initiatives continue in the business to further enhance manufacturing capacity and capability, whilst a number of innovative complementary products will also be added to the product range.

The popular "Profarmer" retail network has now grown to 47 outlets countrywide, and recorded firm volume growth across its core range of products during the year under review.

As previously reported, in May 2020, the Competitions and Tariff Commission ("CTC") directed that the Group's non- controlling investment in Profeeds be disallowed, and that the Group disinvest from the business; additionally, it levied a fine against the Group in the amount of ZW$40.594m for late notification of the investment. The Group appealed to the Administrative Court against the CTC directives. In January 2022, the Administrative Court overturned the CTC's directive for the Group to disinvest from Profeeds, and it further directed that the fine be withdrawn and replaced with a caution. The CTC has since appealed the judgement to the Supreme Court.

PROTEIN

This reporting segment comprises the results of Colcom, Irvine's and Associated Meat Packers ("AMP"), which includes the "Texas Meats", "Texas Chicken" and "Texas Dairy" branded store networks.

The Colcom Division, comprising Triple C and Colcom Foods, recorded an 11% growth in volumes over the comparative year, driven by strong performances in all core fresh and processed product categories. Performance at Triple C continued to be outstanding following ongoing investment into improved genetics, diets and animal housing infrastructure; annual animal production presented the highest achieved so far in the history of the operation.

The Colcom Shop at Coventry Road was refurbished during the year under review, providing customers with an improved retail experience, access to the complete product range, and an increased offering in butchery pork cuts. Investments in new and upgraded equipment in the forthcoming year, combined with improvements in product manufacturing flow design will further enhance efficiencies and increase capacity in the processing facility.

Irvine's recorded volume growth across all three core categories. In the table egg category, a 6% growth over the comparative year represented record production within this category. Frozen poultry demand remained firm, and volumes increased 17% versus the comparative year. Demand across the day-old chick market also improved, and volumes closed 25% ahead of the comparative year.

The medium-term facilities upgrade programme which covers all three core products continues, and will enable further capacity increases in the coming year, whilst the related equipment technology upgrades will continue to drive the individual operations to achieve lowest cost of production.

At AMP, sustained protein demand combined with further expansion of the product portfolio and improved market-reach, drove overall volume growth of 16% over the comparative year.

DIRECTORS: *ABC Chinake (Chairman), JP Schonken (Chief Executive Officer), *MJ Fowler, G Gwainda, *Z Koudounaris, *DK Shinya, *TN Sibanda (*Non-Executive)	1

INNSCOR AFRICA LIMITED

Audited Abridged Group Financial Results

FOR THE YEAR ENDED 30 JUNE 2022

Our passion for value creation

PROTEIN (continued)

Notwithstanding constrained raw material supplies at times, the beef category experienced a pleasing recovery, with volumes closing 21% ahead of the comparative year. The chicken category achieved volume growth of 10% against the comparative year; another solid result.

Expansion of the "Texas" retail network continued, with the opening of the third flagship "Texas Meat Market" situated at Harare's Westgate shopping centre during the financial year under review. A further seven other "Texas" stores were opened throughout the period under review to bring the total retail footprint to 53 stores by year-end.

OTHER LIGHT MANUFACTURING AND SERVICES

This reporting segment comprises Natpak, Prodairy, Probottlers and the Group's non- controlling interests in Probrands.

Natpak recorded pleasing aggregate volume growth of 19% over the comparative financial year.

Volumes within the Rigids division closed 46% ahead of the comparative year, driven by the recent investment into increased production capacity and an extension of the product range.

The Flexibles division delivered volumes 12% ahead of the comparative year, while the Corrugated division, having diversified its production capabilities, also delivered volumes ahead of the comparative year. Notwithstanding subdued maize meal demand across the market, the Sacks division operated near capacity for much of the financial year under review.

The business continues to investigate opportunities in additional, and adjacent packaging categories, with further expansion investment planned for the coming year.

Prodairy continued its positive growth trajectory, as volumes closed 31% ahead of the comparative year, with strong performances across all of the major product categories. Most notably, the Milk category delivered volume growth of 28% ahead of the comparative year, supported by Dairy Blend under the "Revive" brand increasing volumes by 40% over the same period. The popular "Life" branded butter and cream products continue to experience firm demand with aggregate volumes in the category increasing 38% over the comparative year.

The business introduced exciting new 1 litre and 500ml product formats to the market during the year under review, allowing for further product diversification and more efficient targeting of multiple market segments.

Raw milk supplies improved during the year under review as significant investment continued through the Mafuro Farming operation into the growing milking herd, and this was complemented by further expansion of the contract producer base.

Probottlers recorded overall volume growth of 23% over the comparative year, this performance was driven mainly by the carbonated soft drink category operating under the "Fizzi" brand, following investment during the financial year under review into a new dedicated 500ml bottling line. The established cordial category, operating under the "Bally House" brand, also continued to experience favourable volume growth during the period.

At Probrands, overall volumes closed marginally behind the comparative year, although this was largely a result of the operation placing more focus on lower volume, higher-margin specialised categories. The business continues its focus on creating innovative household and condiment products.

PROSPECTS

The Group has delivered an extremely positive set of results for the financial year under review. The performance achieved has been driven by a continued focus on broadening product ranges, significant investment into modern manufacturing processes and technologies, extending production capabilities, and ensuring product and pricing relevance across the market spectrum.

The complexities in the trading and economic environment have required management to continually innovate, by creating simplistic management reporting tools and techniques that can be applied in understanding and measuring real business performance. Significant emphasis has also been placed on identifying and analysing the core functional business models within each operation, with the aim of achieving operational excellence and deeper accountability across the entire Group; this initiative will remain a key focus area in the period ahead.

The Group embarked on an ambitious US$70m investment programme in 2021, with this initiative having reached completion during the year, a further US$56mn of additional investment is planned for the forthcoming financial year. As highlighted earlier in this Statement, the 2023 financial year will see a considerable number of these projects being commissioned across the Group, enabling production capacity increases, adding new product categories, significantly improving product quality and further enhancing production efficiencies; all enabled via the introduction of world-class technologies and plant automations.

Given its size and the nature of the manufacturing cycle, the Group is reliant on both shareholders' equity and debt funding which it deploys, collectively, in the considerable working capital pipelines it needs to establish in order to ensure consistent supply of product to the market, and to ensure that its vast capital maintenance and expansion projects can be executed on. The recent monetary policy interventions have resulted in local debt funding becoming unviable from a business model perspective, and having a pervasive impact on the Group's cost of capital. As a result, the Group has taken firm action to re-arrange its debt facilities as well as revise its working capital strategies in order to adapt to current market conditions; this will remain a key area of focus in the short to medium term.

Careful consideration of monetary policy interventions in respect of money supply and currency stability, along with practical fiscal taxation policy, remain key determinants in fostering the necessary market confidence conducive for growth. The Group remains hopeful that consistent, pro- business measures and policies will be employed, which in turn will encourage further expansion investment into local manufacturing initiatives, reduce the country's reliance on imported goods in the long-term, and result in increased local job creation.

The prevailing economic conditions remain complex and challenging; however, the Group retains its positive outlook as regards macro growth prospects and a medium-term recovery for the economy. Our management teams will continue to adapt and optimise business trading models, with focus being directed to balancing pricing and volume objectives, achieving

appropriate levels of margin return, ensuring that overheads are contained, creating bespoke working capital solutions relevant to current market conditions, and, most importantly, ensuring maximum free cash generation.

Management will look to capitalise on the tremendous learnings and gains experienced and achieved over the past year and we remain positive that the excellent growth trajectory achieved will be sustained into the coming year.

FINAL DIVIDEND

The Board is pleased to declare a final dividend of US$1.56 cents per share payable in respect of all ordinary shares of the Company. This final dividend will be payable to all the shareholders of the Company registered at the close of business on 11th November 2022.

The payment of this final dividend will take place on or around 25th of November 2022. The shares of the Company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 8th November 2022 and ex-dividend from 9th November 2022.

The Board has also declared a final dividend totalling US$453 588 to Innscor Africa Employee Share Trust (Private) Limited. The Innscor Africa Employee Share Trust supports all qualifying beneficiaries with dividend flow and access to various loan schemes.

APPRECIATION

I wish to record my appreciation to the Executive Directors, Management and Staff for their effort during the year under review. I also wish to thank the Non-Executive Directors for their wise counsel and the Group's customers, suppliers and other stakeholders for their continued support and loyalty.

A.B.C. CHINAKE

Independent, Non-Executive Chairman 28 October 2022

Audited Abridged Group Statement of Profit

Or Loss and Other Comprehensive Income

		INFLATION-ADJUSTED	HISTORICAL
		Year ended	Year ended		Year ended	Year ended
		30 June 2022	30 June 2021		30 June 2022	30 June 2021
		Audited	Audited		Supplementary	Supplementary
	Note	ZW$'000	ZW$'000		ZW$'000	ZW$'000
REVENUE		290 780 098	195 082 046		159 575 763	56 485 603
Operating profit before items listed below		87 832 938	24 996 332		38 867 983	11 379 841
financial income	9	5 855 394	2 267 158		9 150 755	645 211
depreciation and amortisation		(3 806 854)	(3 327 510)		(984 068)	(182 305)
fair value adjustments on livestock
and listed equities		3 034 087	(5 155 521)		8 200 630	502 181
Profit before items listed below		92 915 565	18 780 459		55 235 300	12 344 928
net interest expense		(7 579 449)	(4 326 076)		(4 200 875)	(1 283 761)
equity accounted earnings		8 166 761	5 696 001		4 650 806	1 880 571
monetary loss		(23 230 437)	(98 745)		-	-
Profit before tax		70 272 440	20 051 639		55 685 231	12 941 738
tax expense		(16 582 527)	(8 116 006)		(9 717 938)	(2 451 245)
Profit for the year		53 689 913	11 935 633		45 967 293	10 490 493
Other comprehensive income - to be
recycled to profit or loss
exchange differences arising on the translation
of foreign operations attributable to:
equity holders of the parent		16 215 626	1 004 562		16 215 626	1 004 562
non-controlling interests		991 733	11 749		991 733	11 749
Other comprehensive income for the
year net of tax		17 207 359	1 016 311		17 207 359	1 016 311
Total comprehensive income for the year		70 897 272	12 951 944		63 174 652	11 506 804
Profit for the year attributable to:
equity holders of the parent		38 943 944	7 423 621		33 895 857	7 144 165
non-controlling interests		14 745 969	4 512 012		12 071 436	3 346 328
		53 689 913	11 935 633		45 967 293	10 490 493
Total comprehensive income for the
year attributable to:
equity holders of the parent		55 159 570	8 428 183		50 111 483	8 148 727
non-controlling interests		15 737 702	4 523 761		13 063 169	3 358 077
		70 897 272	12 951 944		63 174 652	11 506 804
EARNINGS PER SHARE (CENTS)
Basic earnings per share	16	6 835.78	1 312.78		5 949.70	1 263.36
Diluted basic earnings per share	16	6 835.78	1 299.23		5 949.70	1 250.32

Audited Abridged Group Statement of Financial Position

		INFLATION-ADJUSTED	HISTORICAL
		30 June 2022	30 June 2021		30 June 2022	30 June 2021
		Audited	Audited		Supplementary	Supplementary
	Note	ZW$'000	ZW$'000		ZW$'000	ZW$'000
ASSETS
Non-current assets
property, plant and equipment		63 158 545	36 966 116		23 395 336	4 412 453
right-of-use assets		3 307 678	2 087 659		1 475 533	300 764
intangible assets		5 773 804	5 650 865		95 132	51 233
investments in associates		29 367 595	19 077 921		17 660 937	4 459 909
other assets		7 598 526	3 928 920		7 361 824	1 268 162
biological assets		2 079 720	707 404		1 899 833	225 411
deferred tax assets		-	-		2 395 333	92 320
		111 285 868	68 418 885		54 283 928	10 810 252
Current assets
biological assets		9 291 351	5 895 663		6 377 951	1 672 688
inventories	10	56 184 362	24 716 870		40 825 807	8 331 456
other assets		7 028 942	-		7 028 942	-
trade and other receivables	11	45 846 681	24 898 455		42 949 328	8 650 159
cash and cash equivalents		20 127 751	9 921 595		20 127 751	4 389 036
		138 479 087	65 432 583		117 309 779	23 043 339
Total assets		249 764 955	133 851 468		171 593 707	33 853 591
EQUITY AND LIABILITIES
Capital and reserves
ordinary share capital		761 489	761 331		5 760	5 699
share premium		2 652 625	2 547 630		36 351	25 892
other reserves		17 433 327	(274 188)		19 510 873	2 683 984
distributable reserves		83 043 063	50 763 266		40 488 470	9 470 981
attributable to equity holders of the parent		103 890 504	53 798 039		60 041 454	12 186 556
non-controlling interests		39 167 824	24 569 336		16 792 619	4 230 431
Total equity		143 058 328	78 367 375		76 834 073	16 416 987
Non-current liabilities
deferred tax liabilities		13 857 300	6 283 960		1 910 307	146 326
lease liability	12	1 701 292	723 681		1 701 292	248 208
interest-bearing borrowings	13	3 055 249	1 707 330		3 055 249	585 579
		18 613 841	8 714 971		6 666 848	980 113
Current liabilities
lease liability	12	519 811	258 790		519 811	88 760
interest-bearing borrowings	13	25 126 191	17 417 306		25 126 191	5 973 779
trade and other payables	14	53 407 651	24 869 007		53 407 651	8 946 349
provisions		1 102 769	642 339		1 102 769	220 309
current tax liabilities		7 936 364	3 581 680		7 936 364	1 227 294
		88 092 786	46 769 122		88 092 786	16 456 491
Total liabilities		106 706 627	55 484 093		94 759 634	17 436 604
Total equity and liabilities		249 764 955	133 851 468		171 593 707	33 853 591

NB: Historical information has been provided for supplementary purposes only, as a result the External Auditors have not expressed an opinion on the historical financial information.

www.innscorafrica.com	2

INNSCOR AFRICA LIMITED

Audited Abridged Group Financial Results

FOR THE YEAR ENDED 30 JUNE 2022

Our passion for value creation

Audited Abridged Group Statement of Changes in Equity

attributable to equity holders of the parent

Other Reserves

												Total
	Ordinary	Share		Currency	Treasury	Share-based					Attributable to		Non-	Total
	Share	Premium	Restructure	Translation	Shares	Payment	Total Other		Distributable	Equity Holders		Controlling	Shareholders'
	Capital	Reserve	Reserve	Reserve	Reserve	Reserve	Reserves		Reserves	of the Parent		Interests	Equity
	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$'000		ZW$'000	ZW$'000		ZW$'000	ZW$'000
INFLATION-ADJUSTED
Balances at 30 June 2020	761 130		2 459 712	(1 784 208)	2 067 282	(93 429)	152 984	342 629		47 553 520		51 116 991		22 695 948		73 812 939
Issue of shares	201		87 918	-	-	-	(73 333)	(73 333)		-		14 786		-		14 786
Profit for the year	-		-	-	-	-	-	-		7 423 621		7 423 621		4 512 012		11 935 633
Other comprehensive income	-		-	-	1 004 562	-	-	1 004 562		-		1 004 562		11 749		1 016 311
Dividends paid	-		-	-	-	-	-	-		(4 213 875)		(4 213 875)		(2 705 324)		(6 919 199)
Transactions with owners in their capacity as owners	-		-	(1 176 599)	-	(375 686)	-	(1 552 285)		-		(1 552 285)		54 951		(1 497 334)
Share-based payment charge	-		-	-	-	-	4 239	4 239		-		4 239		-		4 239
Balances at 30 June 2021	761 331		2 547 630	(2 960 807)	3 071 844	(469 115)	83 890	(274 188)		50 763 266		53 798 039		24 569 336		78 367 375
Issue of shares	158		104 995	-	-	-	(84 475)	(84 475)		-		20 678		-		20 678
Profit for the year	-		-	-	-	-	-	-		38 943 944		38 943 944		14 745 969		53 689 913
Other comprehensive income	-		-	-	16 215 626	-	-	16 215 626		-		16 215 626		991 733		17 207 359
Dividends paid	-		-	-	-	-	-	-		(6 664 147)		(6 664 147)		(2 676 345)		(9 340 492)
Transactions with owners in their capacity as owners	-		-	1 575 779	-	-	-	1 575 779		-		1 575 779		1 537 131		3 112 910
Share-based payment charge	-		-	-	-	-	585	585		-		585		-		585
Balances at 30 June 2022	761 489		2 652 625	(1 385 028)	19 287 470	(469 115)	-	17 433 327		83 043 063		103 890 504		39 167 824		143 058 328
HISTORICAL
Balances at 30 June 2020	5 648		20 358	(13 135)	2 067 282	(688)	3 079	2 056 538		3 575 773		5 658 317		1 664 099		7 322 416
Issue of shares	51		5 534	-	-	-	(1 892)	(1 892)		-		3 693		-		3 693
Profit for the year	-		-	-	-	-	-	-		7 144 165		7 144 165		3 346 328		10 490 493
Other comprehensive income	-		-	-	1 004 562	-	-	1 004 562		-		1 004 562		11 749		1 016 311
Dividends paid	-		-	-	-	-	-	-		(1 248 957)		(1 248 957)		(809 249)		(2 058 206)
Transactions with owners in their capacity as owners	-		-	(264 676)	-	(111 730)	-	(376 406)		-		(376 406)		17 504		(358 902)
Share-based payment charge	-		-	-	-	-	1 182	1 182		-		1 182		-		1 182
Balances at 30 June 2021	5 699		25 892	(277 811)	3 071 844	(112 418)	2 369	2 683 984		9 470 981		12 186 556		4 230 431		16 416 987
Issue of shares	61		10 459	-	-	-	(2 584)	(2 584)		-		7 936		-		7 936
Profit for the year	-		-	-	-	-	-	-		33 895 857		33 895 857		12 071 436		45 967 293
Other comprehensive income	-		-	-	16 215 626	-	-	16 215 626		-		16 215 626		991 733		17 207 359
Dividends paid	-		-	-	-	-	-	-		(2 878 368)		(2 878 368)		(1 381 250)		(4 259 618)
Transactions with owners in their capacity as owners	-		-	613 632	-	-	-	613 632		-		613 632		880 269		1 493 901
Share-based payment charge	-		-	-	-	-	215	215		-		215		-		215
Balances at 30 June 2022	5 760		36 351	335 821	19 287 470	(112 418)	-	19 510 873		40 488 470		60 041 454		16 792 619		76 834 073

NB: Historical information has been provided for supplementary purposes only, as a result the External Auditors have not expressed an opinion on the historical financial information.

Audited Abridged Group Statement of Cash Flows

	INFLATION-ADJUSTED	HISTORICAL
	Year ended	Year ended		Year ended	Year ended
	30 June 2022	30 June 2021		30 June 2022	30 June 2021
	Audited	Audited		Supplementary	Supplementary
	ZW$'000	ZW$'000		ZW$'000	ZW$'000
Cash generated from operating activities	60 878 632	24 770 808		8 647 252	5 865 822
net interest expense	(7 579 449)	(4 326 076)		(4 200 875)	(1 283 761)
tax paid	(7 247 722)	(5 365 407)		(3 497 743)	(2 034 902)
Total cash available from operations	46 051 461	15 079 325		948 634	2 547 159
Investing activities	(12 730 372)	(11 494 047)		(6 762 593)	(3 642 598)
Net cash inflow/(outflow) before
financing activities	33 321 089	3 585 278		(5 813 959)	(1 095 439)
Financing activities	28 681 589	10 608 971		14 195 297	2 652 845
Net increase in cash and cash equivalents
before changes in currency translations	62 002 678	14 194 249		8 381 338	1 557 406
Effects of currency translation on cash
and cash equivalents	(51 796 522)	(19 043 163)		7 357 377	705 674
Net increase/(decrease) in cash and
cash equivalents	10 206 156	(4 848 914)		15 738 715	2 263 080
Cash and cash equivalents at the
beginning of the year	9 921 595	14 770 509		4 389 036	2 125 956
Cash and cash equivalents at the end of the year	20 127 751	9 921 595		20 127 751	4 389 036

NB: Historical information has been provided for supplementary purposes only, as a result the External Auditors have not expressed an opinion on the historical financial information.

Supplementary Information

1. Corporate Information
   The Company is incorporated and domiciled in Zimbabwe.
2. Basis of Preparation

The Group's abridged annual inflation-adjusted financial statements for the year ended 30 June 2022 have been prepared in accordance with the requirements of the Zimbabwe Stock Exchange Listing Requirements and in a manner required by the Zimbabwe Companies and Other Business Entities Act, ("COBE") (Chapter 24.31). The Listing Requirements require financial statements to be prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accouting Standards Board ("IASB"). The Group's annual inflation-adjusted financial statements have been prepared based on the statutory records that are maintained under the historical cost basis, except for equity investments and some biological assets that have been measured at fair value. For the purposes of fair presentation in accordance with International Accounting Standard ("IAS") 29 (Financial Reporting in Hyperinflationary Economies), the historic cost financial information has been restated for changes in the general purchasing power of the functional currency of the Group. The annual inflation-adjusted financial statements are presented in Zimbabwe Dollars ("ZW$"); all values are rounded to the nearest one thousand, except where otherwise indicated.

The principal accounting policies applied in the preparation of the Group consolidated annual inflation-adjusted financial statements are in terms of IFRS and applicable amendments to IFRS and the accounting policies have been applied consistently in all material respects with those of the previous consolidated annual inflation-adjusted financial statements.

Supplementary Information (continued)

3 IAS 21 (The Effects of Changes in Foreign Exchange Rates)

The Government of Zimbabwe, in June 2020, promulgated Statutory Instrument 85 of 2020 (SI 85/20) which permitted the use of foreign currencies for domestic transactions. This was followed by the introduction of the Foreign Exchange Auction Trading System (the Auction System) at the end of June 2020 by the Reserve Bank of Zimbabwe (RBZ). During the reporting period, the Group was able to obtain a portion of its foreign currency requirements through the Auction System, but not enough to fully service the Group's foreign currency requirements.

Since the promulgation of SI 85/20 and the introduction of the Auction System, there has at times been a significant disparity between the auction exchange rates and the foreign currency exchange rates obtained through the purchase/ sale of goods and services on the domestic market. As a result of the limited amount of currency secured by the Group on the Auction System, the Directors have used estimated exchange rates derived by reference to trading arrangements between the Group, its customers and suppliers to translate all foreign currency transactions. Additionally, the Directors do not believe that the Auction Exchange rates prevailing during the financial year were, at all times, reflective of a spot exchange rate, contemplated by IAS 21. The IFRIC decision made in September 2018 confirmed that the use of an estimation process when a currency is not exchangeable and when the lack of exchangeability is not short-term, is permissible.

Due to the above and other technicalities related to the conversion of foreign currency transactions and balances into ZW$, the Directors would like to advise users to exercise caution in the use of these consolidated inflation adjusted financial statements in relation to the reporting currency and conversion to other currencies.

The Group's Auditors, Deloitte & Touche, have concluded that the lack of exchangeability is temporary based on RBZ publications and other data. In the opinion of the auditors, given that this lack of exchangeability is not considered long-term, they are of the view that it was not appropriate for the Group to estimate an exchange rate with reference to trading arrangements with its customers and suppliers. As a result, the Independent Auditors, have issued an adverse opinion for the current year ended 30 June 2022 as they believe that the determination of an estimated spot exchange rate was not compliant with the requirements of IFRS. The Auditors believe that the auction exchange rate was the appropriate spot exchange rate that it was observable and accessible for immediate delivery.

The Directors disagree with the conclusion of the Auditors as it was contrary to the circumstances applicable to the Group and particularly in respect of the proportion of the Group's foreign currency requirements secured at the Auction. In addition, there are varying views on the matter in the market, and at present there is no appropriate applicable guideline issued by the relevant Statutory Boards on the subject. The Directors have therefore applied their best judgement under the circumstances faced by the Group.

4 IAS 29 (Financial Reporting in Hyperinflationary Economies)

IAS 29 requires restatement of the financial statements of an entity whose reporting and presentation currency is a currency of a hyperinflationary environment. Under this standard, financial statements prepared in a currency of a hyperinflationary economy should be stated in terms of a measuring unit current at the reporting date and the corresponding figures for the prior periods should also be stated in terms of the same measuring unit. The standard lists the characteristics of hyperinflationary economic environment as: when the population prefers to keep its wealth in non-monetary assets and regards monetary amounts in terms of a relative stable foreign currency, sales are at prices that compensate for expected loss of purchasing power; and cumulative inflation rate over three years is approaching or exceeding 100%. In line with the PAAB announcement on 11 October 2019, that the Zimbabwean economy was now trading under hyperinflationary conditions from 1 July 2019, the Directors have applied the requirements of IAS 29 as issued by the IASB in preparing these consolidated annual inflationadjusted financial statements. The consolidated inflation-adjusted financial statements have been drawn up using the conversion factors derived from the consumer price index "CPI" prepared and issued by the Zimbabwe Central Statistical Office. The inflation-adjusted financial statements which form the primary financial statements of the Group and on which the audit opinion has been based, have been presented together with the historical numbers.

www.innscorafrica.com	3

INNSCOR AFRICA LIMITED

Audited Abridged Group Financial Results

FOR THE YEAR ENDED 30 JUNE 2022

Our passion for value creation

Supplementary Information (continued)

4 IAS 29 (Financial Reporting in Hyperinflationary Economies) (continued)

The historical numbers are presented as supplementary information only and as a result the External Auditors have not expressed an opinion on the historical financial information. In accordance with IAS 29 monetary assets and liabilities and non-monetary assets and liabilities carried at fair value have not been restated and are presented at the measuring unit current at the end of the reporting period. Items recognised in the income statement have been restated by applying the change in CPI from dates when the transactions were initially recorded in the Group's financial records (transaction date). A net monetary adjustment was recognised in the statement of profit or loss for the year ended 30 June 2022 and the comparative year.

Comparative amounts in the Group's consolidated annual inflation-adjusted financial statements have been restated to reflect the change in the CPI to the end of the reporting period. All items in the statement of cash flows are expressed based on the restated financial information for the period.

The CPI's and conversion factors used by the Group to adjust for inflation the Group's historical cost figures for the year under review are as follows:

MONTH		Conversion
	CPI	Factor
Jun-22	8 707.35	1.0000
Jun-21	2 986.44	2.9156
Jun-20	1 445.21	6.0250

1. Statutory Receivables
   As reported in previous Group annual inflation-adjusted financial statements, the Group has foreign legacy debts amounting to US$3 453 811 (2021: US$3 783 811), being foreign liabilities that were due and payable on 22 February 2019 when the authorities promulgated SI33/2019 which introduced the ZW$ currency. The foreign liabilities were registered and approved by the Reserve Bank of Zimbabwe, ("RBZ") and the Group transferred to the RBZ the ZW$ equivalent of the foreign liabilities based on an exchange rate of ZW$ 1 = US$ 1 in line with Exchange Control Directives RU102/2019 and RU28/2019 and as directed by the RBZ. The foreign liabilities have been accounted for at the closing rate of exchange as at 30 June 2022 in line with IAS 21 and the deposits with the RBZ have been accounted for as statutory receivables at the same closing exchange rate, in compliance with IFRS 9. Subsequent to year end the Directors received a notification from the Group's Bankers indicating that the Group had been issued with Treasury Bills in lieu of the statutory receivables and the Treasury Bills mature in 2025, these Treasury Bills will be held to maturity.
2. Transactions with non-controlling interests

6.1 Acquisition of remaining interest in Bakers Inn Logistics (Private) Limited

During the year, the Group acquired an additional 50% of the issued shares of Bakers Inn Logistics (Private) Limited, ("BIL"/"the Company") for ZW$3.278bn (Historical ZW$937mn). Immediately prior

to the purchase, the Group had a 50% interest in the Company. The Group recognised an increase in controlling interest from 50% to 100%.

6.2 Disposal of 0.37% interest in National Foods Holdings Limited

During the year, the Group disposed of 187 880 of the shares held in National Foods Holdings Limited,

("NFHL") resulting in a change in shareholding from 37.82% to 37.45%. The Group recognised a decrease of 0.37% in its effective controlling interest, which did not result in loss of control.

7 Disposal and Restructure Transactions

During the year the Group was involved in the following disposal and/or restructure transactions.

				INFLATION-ADJUSTED	HISTORICAL
				Proceeds	Profit/		Proceeds	Profit/
			Effective	from	(loss) on		from	(loss) on
		Effective	Interest	disposal	disposal		disposal	disposal
		Date	disposed	ZW$'000	ZW$'000		ZW$'000	ZW$'000
Disposal/Restructure transactions
Disposal of Pure Oil
Industries (Private)
Limited		30 June 2022	15.13%	7 735 029	4 101 365		7 735 029	7 399 997
Disposal of IL Integrated
Agri (Private) Limited	1 July 2021	50%	287 782	(622 743)		101 231	(79 560)
Disposal of Skitap
(Private) Limited		1 July 2021	50%	1 841 736	1 189 862		647 857	641 906
Disposal of Capri
Signs & Capri Corp
(Private) Limited	30 September 2021	100%	1 667 465	1 658 781		640 000	637 172
				11 532 012	6 327 265		9 124 117	8 599 515

8 Operating Segments

The Group's operations comprise of the Mill-Bake, Protein, Other Light Manufacturing and Head Office Services and Other Services explained as follows:

Mill-BakeSegment - reports the results of the Group's interests in National Foods Holdings Limited, the Bakers inn Manufacturing ("BIM"), Superlinx Logistics (Private) Limited and non-controlling interests in Profeeds (Private) Limited.

Protein Segment - This segment reports the Group's interest in the Colcom Division and Irvine's Zimbabwe (Private) Limited. Associated Meat Packers (Private) Limited "AMP" and Intercane Investments (Private) Limited.

Other Light Manufacturing -	The main operations in this	reporting	segment are the	Group's
controlling interests in Natpak	(Private) Limited, Probottlers	(Private)	Limited, Prodairy	(Private)

Limited, Sabithorn (Private) Limited, Saxin Enterprises (Private) Limited, The Buffalo Brewing Company (Private) Limited ("TBBC") and associated interests in Probrands (Private) Limited.

Head Office Services and other - This segment reports the Group's shared services functions namely treasury, internal audit, legal, company secretarial services, Providence Human Capital and MyCash Financial Services (Private) Limited. The segment also includes associated interests in PaperHole Investments (Private) Limited, Afrigrain (Private) Limited and the remaining SPAR Zimbabwe operations balances which are being collected and settled as part of ongoing Head Office Services activities.

8 Operating Segments (continued)

				Head Office
			Other Light	Services	Inter-
			Manufacturing	& Other	Segment
	Mill-Bake	Protein	and Services	Services	Adjustments	Total
	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$'000
INFLATION-ADJUSTED
Revenue
30 June 2022	165 767 088	92 869 945	70 601 236	7 656 146	(46 114 317)	290 780 098
30 June 2021	118 424 393	64 428 892	29 438 453	1 719 639	(18 929 331)	195 082 046
Operating profit/(loss) before
depreciation, amortisation and
fair value adjustments
30 June 2022	51 549 912	23 464 946	14 075 492	(1 257 412)	-	87 832 938
30 June 2021	12 053 915	8 967 608	3 852 953	121 856	-	24 996 332
Depreciation and amortisation
30 June 2022	1 450 662	956 441	965 726	433 168	857	3 806 854
30 June 2021	887 545	1 232 309	983 842	219 771	4 043	3 327 510
Equity accounted earnings
30 June 2022	1 579 418	-	(124 810)	6 712 153	-	8 166 761
30 June 2021	2 211 470	567 331	219 625	2 697 575	-	5 696 001
Profit before tax
30 June 2022	30 738 505	14 239 417	2 293 074	23 202 146	(200 702)	70 272 440
30 June 2021	9 325 227	6 436 877	2 442 811	1 846 724	-	20 051 639
Segment assets
30 June 2022	92 923 188	48 491 702	44 203 562	79 837 353	(15 690 850)	249 764 955
30 June 2021	57 706 709	34 804 196	20 279 814	30 808 104	(9 747 355)	133 851 468
Segment liabilities
30 June 2022	45 859 956	25 637 306	31 332 251	14 092 387	(10 215 273)	106 706 627
30 June 2021	24 682 245	15 275 588	10 781 119	6 333 917	(1 588 776)	55 484 093
Capital expenditure
30 June 2022	12 289 651	4 400 318	6 430 377	1 961 442	-	25 081 788
30 June 2021	3 157 602	4 505 679	3 451 323	309 642	-	11 424 246
Cash flow from operating activities
30 June 2022	4 829 559	42 037 055	19 462 738	17 159 768	(22 610 488)	60 878 632
30 June 2021	12 814 159	6 839 108	2 926 456	2 236 640	(45 555)	24 770 808
Investing activities
30 June 2022	(295 445)	5 561 930	7 672 880	1 968 295	(2 177 288)	1 2 730 372
30 June 2021	3 143 601	4 121 653	4 264 683	6 11 492	(647 382)	1 1 494 047
Financing activities
30 June 2022	12 236 034	2 615 194	10 835 232	13 133 320	(10 138 191)	28 681 598
30 June 2021	6 421 986	6 718 730	5 782 691	3 168 033	(11 482 469)	10 608 971
HISTORICAL
Revenue
30 June 2022	90 970 495	50 965 635	38 744 901	4 201 579	(25 306 847)	159 575 763
30 June 2021	34 289 538	18 655 252	8 523 843	497 918	(5 480 948)	56 485 603
Operating profit/(loss) before
depreciation, amortisation and
fair value adjustments
30 June 2022	22 811 956	10 383 748	6 228 711	(556 432)	-	38 867 983
30 June 2021	5 478 099	4 075 477	1 751 038	75 227	-	11 379 841
Depreciation and amortisation
30 June 2022	374 995	247 239	249 639	111 974	221	984 068
30 June 2021	48 626	67 515	53 902	12 041	221	182 305
Equity accounted earnings
30 June 2022	899 447	-	(71 077)	3 822 436	-	4 650 806
30 June 2021	640 405	164 290	63 600	1 012 276	-	1 880 571
Profit before tax
30 June 2022	24 357 782	11 283 587	1 817 076	18 385 825	(159 039)	55 685 231
30 June 2021	6 018 692	4 154 492	1 576 640	1 191 914	-	12 941 738
Segment assets
30 June 2022	63 840 158	33 314 805	30 368 764	54 849 918	(10 779 938)	171 593 707
30 June 2021	13 771 646	8 305 985	4 839 756	7 352 321	(416 117)	33 853 591
Segment liabilities
30 June 2022	40 725 422	22 766 924	27 824 257	12 514 587	(9 071 556)	94 759 634
30 June 2021	7 590 923	4 697 944	3 315 689	1 947 970	(115 922)	17 436 604
Capital expenditure
30 June 2022	8 100 064	2 900 234	4 238 238	1 292 781	-	16 531 317
30 June 2021	1 019 589	1 454 880	1 114 431	99 984	-	3 688 884
Cash flow from operating activities
30 June 2022	685 995	5 970 980	2 764 504	2 437 388	(3 211 615)	8 647 252
30 June 2021	3 034 442	1 619 527	692 996	529 645	(10 788)	5 865 822
Investing activities
30 June 2022	(156 946)	2 954 592	4 075 965	1 045 592	(1 156 610)	6 762 593
30 June 2021	996 244	1 306 200	1 351 528	193 789	(205 163)	3 642 598
Financing activities
30 June 2022	6 045 842	1 292 171	5 353 704	6 489 193	(4 985 613)	14 195 297
30 June 2021	1 605 861	1 680 064	1 446 001	792 188	(2 871 269)	2 652 845

www.innscorafrica.com	4

INNSCOR AFRICA LIMITED

Audited Abridged Group Financial Results

FOR THE YEAR ENDED 30 JUNE 2022

Our passion for value creation

Supplementary Information (continued)

			INFLATION-ADJUSTED	HISTORICAL
			Year ended	Year ended		Year ended	Year ended
			30 June 2022	30 June 2021		30 June 2022	30 June 2021
			Audited	Audited		Supplementary	Supplementary
			ZW$'000	ZW$'000		ZW$'000	ZW$'000
9	Financial income
	Dividend income	277 007	294 952		108 685	69 799
	Exchange (losses)/gains - realised	(5 602 580)	3 359 445		(4 491 007)	994 772
	Exchange gains/(losses) - unrealised	3 043 528	(1 695 786)		3 043 528	(709 515)
	Profit on disposal of associates	6 327 265	-		8 599 515	-
	Gain on bargain purchase of BIL	16 268	-		5 725	-
	Gain on revaluation of statutory receivables	1 792 722	372 894		1 792 722	127 895
	Profit on disposal of property,
		plant and equipment	1 184	8 047		91 587	35 487
	Profit on disposal of assets for disposal
		group held for sale	-	366 747		-	144 620
	Other	-	(439 141)		-	(17 847)
			5 855 394	2 267 158		9 150 755	645 211
10	Inventories
	Consumables	5 724 246	2 396 615		4 441 388	797 124
	Finished products, net of allowance
		for obsolescence	15 905 849	5 413 815		12 287 955	1 831 408
	Raw materials and packaging	34 255 935	16 590 598		23 798 132	5 594 596
	Goods in transit	-	17 567		-	6 025
	Work in progress	298 332	298 275		298 332	102 303
			56 184 362	24 716 870		40 825 807	8 331 456
11	Trade and other receivables
	Trade receivables	28 149 666	12 963 855		28 149 666	4 446 337
	Prepayments	12 047 754	8 209 306		9 150 401	2 727 457
	VAT Receivable	1 424 256	905 675		1 424 256	310 628
	Other receivables	4 365 951	3 017 083		4 365 951	1 233 463
			45 987 627	25 095 919		43 090 274	8 717 885
	Allowance for credit losses	(140 946)	(197 464)		(140 946)	(67 726)
			45 846 681	24 898 455		42 949 328	8 650 159
12	Lease liability
	Analysis
	Non-current	1 701 292	723 681		1 701 292	248 208
	Current	519 811	258 790		519 811	88 760
			2 221 103	982 471		2 221 103	336 968
	Undiscounted future lease payments
	Payable within one year	2 439 268	1 013 448		2 439 268	347 592
	Payable two to five years	11 223 036	4 490 539		11 223 036	1 540 163
	Payable after five years	14 334 944	5 498 628		14 334 944	1 885 917
			27 997 248	11 002 615		27 997 248	3 773 672

13 Interest Bearing Borrowings

Interest-bearing borrowings constitute bank loans from various local financial institutions which accrue interest at an average rate of 34% at the end of the year. Subsequent to year-end ZW$ loans had their average cost adjusted by monetary authorities from 34% to an average of between 100% and 200%.

These facilities expire at different dates and will be reviewed and renewed when they mature.

		INFLATION-ADJUSTED	HISTORICAL
		Year ended	Year ended		Year ended	Year ended
		30 June 2022	30 June 2021		30 June 2022	30 June 2021
		Audited	Audited		Supplementary	Supplementary
		ZW$'000	ZW$'000		ZW$'000	ZW$'000
14 Trade and other payables
Trade payables	28 948 392	7 855 874		28 948 392	2 694 404
Accruals	9 216 422	3 310 524		9 216 422	1 135 442
Other payables	15 242 837	13 702 609		15 242 837	5 116 503
		53 407 651	24 869 007		53 407 651	8 946 349
15 Commitments for capital expenditure
Authorised and contracted	6 901 715	7 704 600		6 901 715	2 642 520
Authorised but not contracted	7 387 642	2 767 917		7 387 642	949 339
		14 289 357	10 472 517		14 289 357	3 591 859

The capital expenditure is to be financed out of the Group's own resources and existing borrowing facilities.

16 Earnings per share, ("EPS") Basic earnings basis

The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the weighted average number of ordinary shares in issue for the year.

Diluted earnings basis

The calculation of diluted earnings per share is based on the profit attributable to equity holders of the parent and the weighted average number of ordinary shares in issue after adjusting for potential conversion of share options. The potential conversion is possible when the average market price of ordinary shares during the year exceeds the exercise price of such options.

The share options arising from the Group's Employee Share Trust Scheme were not dilutive as at the end of the current period.

Headline earnings basis, ("HEPs")

Headline earnings comprise of basic earnings attributable to equity holders of the parent adjusted for profits, losses and items of a capital nature that do not form part of the ordinary activities of the Group, net of their related tax effects and share of non-controlling interests as applicable. The Group has presented HEPs in line with the guidance issued by South Africa Institute of Chartered Accountants, ("SAICA") Circular 1/21 in the absence of similar guidance on the local market.

				INFLATION-ADJUSTED	HISTORICAL
				Year ended	Year ended	Year ended	Year ended
				30 June 2022	30 June 2021	30 June 2022	30 June 2021
				Audited	Audited	Supplementary	Supplementary
				ZW$'000	ZW$'000	ZW$'000	ZW$'000
16 Earnings per share (continued)
Headline earnings basis (continued)
The following reflects the income data used
in the basic, headline and diluted earnings
per share computations:
a Net profit attributable to equity
		holders of the parent	38 943 944	7 423 621	33 895 857	7 144 165
b Reconciliation of basic earnings
		to headline earnings
		Adjustment for non-headline
		items (gross of tax):
			Profit on disposal of property,
			plant and equipment	(1 184)	(8 047)	(91 587)	(35 487)
			Profit on disposal of assets for
			disposal group held for sale	-	(366 747)	-	(144 620)
			Profit on disposal of
			associate and subsidiaries	(6 327 265)	-	(8 599 515)	-
			Gain on bargain purchase of BIL	(16 268)	-	(5 725)	-
			Tax effect on adjustments	1 568 412	92 648	2 149 855	44 523
			Non-controlling interests' share
			of adjustments	1 928 847	212 290	3 522 230	102 015
			Headline earnings attributable to
			equity holders of the parent	36 096 486	7 353 765	30 871 115	7 110 596
c Reconciliation of weighted average number of ordinary shares ("000)
				No. of	No. of	No. of	No. of
				shares issued	shares issued	shares issued	shares issued
		Number of shares in issue at the
			beginning of the year	569 876	564 777	569 876	564 777
		Add: Weighted Average number of
			shares issued during the year	4 471	3 898	4 471	3 898
		Less: Weighted Average number of
			Treasury Shares	(4 640)	(3 186)	(4 640)	(3 186)
			Weighted Average Number of
			Ordinary Shares	569 707	565 489	569 707	565 489
		Weighted average number of ordinary
			shares before effect of dilution	569 707	565 489	569 707	565 489
		Effect of dilution from share options:	-	5 896	-	5 896
		Weighted average number of ordinary
			shares adjusted for the effect of dilution	569 707	571 385	569 707	571 385
		Basic earnings per share (cents)	6 835.78	1 312.78	5 949.70	1 263.36
		Headline earnings per share (cents)	6 335.97	1 300.43	5 418.77	1 257.42
		Diluted basic earnings per share (cents)	6 835.78	1 299.23	5 949.70	1 250.32
		Diluted headline earnings per share (cents)	6 335.97	1 287.01	5 418.77	1 244.45
				INFLATION-ADJUSTED	HISTORICAL
				Year ended	Year ended	Year ended	Year ended
				30 June 2022	30 June 2021	30 June 2022	30 June 2021
				Audited	Audited	Supplementary	Supplementary
				ZW$'000	ZW$'000	ZW$'000	ZW$'000

17 Contingent liabilities Guarantees

The contingent liabilities relate to bank guarantees provided in respect of associate companies borrowings

as at 30 June 2022.

5 053 250

8 654 516

5 053 250

2 968 322

1. Uncertain tax positions
   The significant currency changes in Zimbabwe since 2018 have created some uncertainities in the treatment of taxes due to the absence of clear guidance and transitional measures from the tax authorities. Complications arose from the wording of the tax legislation in relation to the currency of settlement for certain taxes which gives rise to varying interpretations within the economy. The Group has several unresolved tax matters with ZIMRA arising from the differences in interpretation of the tax legislation. Some of these matters are in the courts while some are being discussed between the Group and ZIMRA.
2. Going Concern
   The Directors have assessed the ability of the Group to continue as a going concern and have satisfied themselves that the Group is in a sound financial position and has adequate resources to continue in existence for the foreseeable future. Accordingly, they believe that the preparation of these consolidated Group annual inflation-adjusted financial statements on a going concern basis is appropriate.
3. Events after reporting date Final Dividend Declaration
   Subsequent to year end the Board declared a final dividend of US$1.56c per share payable in respect of all ordinary shareholders of the Company.
   On the same date the Board also declared a final dividend totalling US$453 588 to Innscor Africa Employee Share Trust (Private) Limited.
   Treasury Bills
   In July 2022 the the Directors received a notification from the Group's Bankers indicating that the Group had been issued Treasury Bills in lieu of "Statutory Receivables" in note 5 above. The Treasury Bills mature in 2025 no additional information was received from the authorities but the Group intends to hold these Bills to maturity.

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