Collaboration key to maintaining market confidence
AGRO-INDUSTRIAL group, CFI Holdings Limited, says collaborative dialogue between Government, industry and other stakeholders is critical in order to safeguard business confidence and buttressing significant economic achievements attained since the introduction of the auction system.
Amid macro-economic constraints attributed to speculative market indiscipline and external factors linked to global geopolitical complications, the company said it remains optimistic of consolidating its fortunes in light of the evolving challenges, adding that it will maintain its focus on sustaining business continuity in the obtaining environment.
“The group will maintain its focus on sustaining business continuity in the obtaining environment.
“The group hopes that collaborative dialogue between Government, industry and other stakeholders will be maintained in order to safeguard business confidence and the significant economic achievements attained since the introduction of the auction system,” said the company in a lest trading update.
The Government introduced the forex trading system in June 2020 as part of measures to stabilise the exchange rates and improve businesses’ access to forex.
According to the Reserve Bank of Zimbabwe (RBZ) Mid-Term Monetary Policy Statement a total of US$834,7 million has been allotted to various productive sectors of the economy through the auction system during the seven months to July compared to US$1,1 billion in the same period last year.
The decline in forex allocations was in tandem with the reduced number of bids approved on the auction system, as the interbank forex system takes root.
Reserve Bank of Zimbabwe (RBZ)
According to the mid-term monetary statement, the 2022 disbursements represent 91 percent of the total bids submitted to the auction as of 26 July.
Meanwhile, CFI Holdings said historical revenues for the quarter ended 30 June 2022 grew by 195 percent to $5,29 billion from $1,79 billion in the comparative prior year quarter.
However, the late onset of the 2021/22 rain season and the resultant lower harvest suppressed demand for agricultural inputs. Sales volumes for the retail division’s key revenue drivers during the quarter were behind the same period last year.
“The late onset of the 2021/22 rain season and the resultant lower harvest suppressed demand for agricultural inputs,” said the company.
“Demand for fertilisers, which traditionally peak during the tobacco marketing season, was also constrained by the significant real price increases for the commodity.”
fertiliser
Cement sales for the quarter were also adversely affected by supply constraints, it noted.
On Victoria Foods, a milling subsidiary of CFI, flour sales were up 135 percent relative to the comparable prior quarter following the re-capitalisation at the beginning of the year and improved raw materials available during the period.
Glenara harvested 1 770 tons of maize as well as 729 tons of potatoes and 621 tons of soya beans, maintaining yields relative to prior year, it added.
Money. Image taken from Shutterstock
On its financial performance, the group inflation-adjusted revenues grew by 21,8 percent to $6,54 billion from $5,34 billion in the prior year quarter.
Historical revenues for the quarter under review grew by 195 percent to $5,29 billion in the current quarter from $1,79 billion in the comparative prior year quarter.-chronicle.c.zw
