FOOD producer, National Foods Holdings Limited (National Foods) has revealed it delisting from the Victoria Falls Stock Exchange (VFEX) will unlock greater operational flexibility and long-term value for the business, owing to its planned capital projects.
On January 31, National Foods officially delisted from the VFEX, which the company first announced it would do back in November 2024.
The company cited low liquidity and limited investor appetite on the foreign currency-denominated stock market as the major reasons behind the delisting.
National Foods had migrated to the VFEX in December 2022 from the Zimbabwe Stock Exchange (ZSE), in line with authorities’ efforts to promote foreign currency trading and attract offshore capital.
However, the company felt the VFEX failed to meet those objectives.
“We believe that, in the long term, delisting will prove to be the correct move for National Foods,” National Foods chief executive officer Mike Lashbrook told NewsDay Business in an interview
He added that the company currently had several major capital projects underway, aimed at improving efficiency and reducing costs.
The firm had earlier revealed it had set aside capex of US$16 million for 2025 earmarked for its solar project, upgrading its Harare stock feeds plant, and expanding its rice factory.
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“National Foods currently has a number of major capex investments underway. These include significant upgrades to our Harare stockfeed plant, the installation of a solar power plant at Aspindale, which is our largest manufacturing plant, and the construction of a rice packing facility also at Aspindale,” Lashbrook said.
“All of these investments are targeted at lowering costs and improving our operating efficiencies.”
National Foods also reported a strong financial performance for its half-year ended December 31, 2024, with volumes up 25% compared to the same 2023 period.
This is largely driven by growth in the maize and stockfeed segments.
The company welcomed recent exchange rate stability, attributing it to prudent ZiG liquidity management, and noted that while it accepts various payment methods, the bulk of its revenue remains US dollars.
“We appreciate the prudent management of ZiG liquidity, which has resulted in exchange rate stability over the last six months,” Lashbrook said.
“We welcome all forms of payment from our customers, although our revenues are currently predominantly in USD — as is the case in most sectors of the economy.”
He said the Reserve Bank of Zimbabwe had provided excellent support for the firm’s foreign currency needs.
“The current season looks much more promising for our farmers, and we are looking forward to sourcing much more of our grain locally in the coming year,” Lashbrook added.
The promising season comes from the fact that the 2024/25 agricultural period is experiencing some La Niña weather conditions of above average rainfall in certain parts of Zimbabwe.
