CFI turnover jumps 153pc on good rains
CFI Holdings says group turnover for the five months ended 28 February 2022 increased 153 percent to $7,8 billion driven by an improvement in aggregate demand following a good 2020/2021 rainy season.
Shingirayi Chibhanguza, the group’s acting chief executive, told shareholders at the company’s annual general meeting that the good rainy season boosted both summer crops and tobacco output.
“In addition, the group benefited from growing demand for Agrifoods’ stock-feed after it exited judicial management. The historical growth compares to average official year on year inflation of 60.1 percent for the period,” he said.
He noted that of the total turnover, retail accounts for 87 percent, Glenara — 2 percent and Victoria Foods 11 percent.
“Volumes on the top five key revenue drivers increased by an average of 83 percent during the period and this was realised on the back of a good agricultural season and the impact of increased stockfeed sales contribution by Agrifoods.”
Mr Chibhanguza said during the period, the group accessed additional borrowings equivalent to US$7,3 million in order to support Agrifoods and Victoria Foods’ working capital requirements.
“However, the group’s cost of borrowing declined during the period as the group accessed its loans mainly in US dollars,.
In terms of operations, he said retail volumes were boosted by the prior year’s good agricultural season, and though modest, a resurgence in construction activities and relative stability in the economic environment.
On farming operations, Glenara established 495 hectares of commercial maize and 178 hectares of soya bean crop, in addition to table potato production.
“Glenara has remained profitable on the back of the farm recapitalisation undertaken in prior years and reasonable yields being attained in its farming operations.”
He noted that on the properties side, the group was continuing with layout plans regularisation and furtherance of development preliminaries to allow commencement of the development phase of the projects at Saturday Retreat and Lot A of the Rest.
“However, the group continues to deal with the scourge of land barons interrupting the group’s plans for progressive and orderly infrastructure deployment, but the Group welcomes the authorities’ support in dealing with the land matters for the good of our communities.”
Mr Chibhanguza indicated that in the interest of the safety of staff and customers, the group continues to adhere to the Covid-19 health and safety measures in accordance with Ministry of Health and WHO standards.
He highlighted that the group has improved its digital footprint in order to afford customers enhanced digital experiences and improved efficiencies in transacting with the group.
As a result, he said management remains focused on consolidating the Group’s resurgence in order to nurture the businesses to contribute fully to food sustainability in the country whilst delivering acceptable returns to shareholders.-The Herald
