CFI revenues rise 30pc

Agro-industrial giant, CFI Holdings Limited, says revenue for the full year to September 30, 2020 rose 30 percent to $3,4 billion, driven by consolidation of Crest Poultry Group’s revenue after it exited judicial management at the begining of this year.

The group also attributed the revenue growth to increases in sales volumes in the last quarter of the year.

Retail operations remained the group’s biggest revenue contributor accounting for 99 percent, an increase from 98 percent in the prior year, while farming operations contributed 1 percent.

The group’s operating profit, inclusive of monetary gain, increased by 10,8 percent to $701,7 million, compared to $633,1 million earned in the prior comparable period.

“The improvement is attributable to cost containment efforts sustained during the period, increased procurement efficiencies and the positive contribution from CPG’s performance.

“The group incurred higher depreciation expenses at $55.5 million against $31,6 million incurred in the prior period following the asset portfolio’s revaluation at the end of prior year as well as the impact of capital expenditure of $72,5 million in the current year,” said chairman Itai Pasi in a statement accompanying the financial results.

Entities under judicial management posted a profit before tax of $220,2 million from prior year’s loss before tax of $1,1 billion on the back of gains of $236,8 million during the year.

According to the group, management is pushing for lifting of judicial management of its entities that include Victoria Foods as well as it’s suspension from the Zimbabwe Stock Exchange (ZSE) which was effected in 2018.

“The group continues to pursue the exit of Victoria Foods from judicial management and will give an update in due course,” she said.

Meanwhile, Crest Poultry Group’s judicial management was lifted which helped boost the group’s figures.

“The return of this company to the group’s control after more than four years under judicial management will mark an important milestone in the group’s turnaround efforts and the group’s resurgence as a significant pillar in underpinning food security in the economy,” said Pasi. At Farm & City, turnover growth was subdued due to the poor rains received at the onset of 2019/20 farming season which dampened farmers’ hope for a good season resulting in reduced sales volumes of fertilizers, crop seed and agro-chemicals.

Glenara Estates harvested 680 tonnes of soya beans and 2 900 tonnes of maize in the 2019/20 season as farm profitability improved on the back of a 142 percent increase in table potato production during the period.

The group also bemoaned the challenging operating environment that was worsened by the outbreak of the Covid 19 pandemic.-herald.cl.zw