CFI sees strong demand
CFI Holdings says aggregate demand across its business units for the quarter to June 30, 2021 was buoyed by the relatively good 2020/2021 rainy season, which boosted both summer crops and tobacco output.
CFI is an agro-industrial focused group, whose shares are currently suspended from trading on the Zimbabwe Stock Exchange (ZSE) for violating certain listing rules and regulations.
Mr Panganai Hare, the group’s secretary, said as a result of growth in aggregate demand, sales volumes in the key revenue drivers improved by 169 percent over the previous period.
“Also contributing to the growth during the period, though modest, was the resurgence in construction activities as well the Group benefited from growing demand for Agrifoods’ stock-feeds after it exited judicial management in prior year as well as opening of additional retail stores during the period,” he said.
Mr Hare said during the period under review, Farm & City reopened its Chipangayi branch in May 2021 and added another branch in Masvingo at the beginning of June 2021.
“At Glenara Estates, both maize and table potatoes harvested increased by 42 percent and 85 percent respectively,” Mr Hare said.
He noted that Victoria Foods’ legacy foreign and local creditor debts were fully repaid during the period and having resolved the legacy debt issues, the company was expected to shortly exit judicial management once the courts sanction the same.
The company said that the operating environment continued to improve following the introduction of the foreign currency auction system and the use of the United States Dollar (USD) as a mode of payment in June 2020.
It added that these measures reinforced stability and assisted the group in sourcing various raw materials and merchandise efficiently.
The group’s revenue, in inflation adjusted terms, increased by 88 percent relative to the comparative period, whilst margins softened to reflect a more stable pricing regime as inflation continues to slow down.
“Turnover contributions for the quarter were retail operations 94,9 percent whilst farming operations contributed 5,1 percent.”
Hare said while the Covid-19 pandemic was expected to continue, the group expected improved business outturn overall for the 2021 financial year, driven implementation of the more flexible lockdown measures compared to prior year.
“The management of consistent raw material supplies for Agrifoods and Victoria Foods will remain an on-going priority as the Group seeks to play its part in underpinning food security in the country,” Mr Hare said.
He added that priority will also be given to the development of low cost housing delivery in Harare South in support of Government’s Vision 2030 housing plans.
“The scourge of land barons will need resolution to make way for progressive and orderly infrastructure deployment and service delivery to the various settlements,” he noted. CFI said while it has maintained constant engagement with the ZSE in order to resolve issues pertaining to the suspension of trading its shares on the local equities bourse, it
did not get any update from the ZSE during the quarter under review.
The company’s shares were suspended in January 2018, as the company failed to comply with free float requirements.-herald.cl.zw
