CFI Holdings subsidiary exits judicial management
A SUBSIDIARY of CFI Holdings, Crest Poultry Group (CPG), has come out of judicial management after $42, 5 million was raised to pay its creditors.
In a trading update to shareholders for the quarter ended December 31, 2019, CFI Holdings said the group’s focus now remains on its capital structure and preparing for further growth.
“On 31 January 2020, Crest Poultry Group exited judicial management.
“The Board continues to work with the judicial manager on ensuring that Victoria Foods also exits judicial management before the financial year ending 30 September 2020,” said CFI Holdings.
CPG was placed under judicial management in 2016 after failing to viably fund its operations.
The embattled CFI in 2019 embarked on a recapitalisation drive on a number of its dismally performing subsidiaries following the partial clearance of credit.
In the year the group invested $5,4 million in replacement capital expenditure driven mainly by the branch refurbishments and fleet renewal of distribution trucks and branch managers’ vehicles to enhance marketing and operational efficiencies.
“During the period, Farm & City (‘FCC’) extended its operations by opening two branches, one in Harare and the second one in Bulawayo.
“The erratic grid power supply and escalating fuel costs significantly impacted running costs.
“In order to mitigate the effect of the energy crisis, FCC continues to deploy solar equipment and hybrid batteries across its retail network to mitigate the challenge,” it said.
At its Glenara Estates, CFI said during the period under review 450 hectares were under maize and 250 hectares were under soya.
Sales volumes during the period declined by 17 percent relative to the prior year largely due to the impact of erosion of disposable incomes.
“The Group is pleased with the market acceptance of the Agrifoods stockfeeds range. Victoria Foods resumed mealie-meal production in Gweru during the quarter and is assisting in enhancing food security in the central and southern parts of the country.
“Volume performance in the other key categories reflected consumers down-trading to more affordable commodities,” said the group.
In the outlook, the group intends to focus on ensuring consistent raw material supply pipelines are maintained despite poor liquidity obtaining in the market and continued currency devaluation, which will continue to be closely managed.
“The Group will focus on consolidating recovery efforts while preserving shareholders’ capital amid rising cost-push inflationary pressures and continued pricing distortions,” said CFI. —chroncie. o.zw
