Agro-industrial concern, CFI Holdings Limited posted a 30 percent increase in revenue for the full year ended 30 September 2020 driven by consolidation of revenue from its poultry subsidiary – Crest Poultry Group (CPG) now out of judiciary management.
Revenue for the Group in inflation adjusted terms increased by 30.1 percent from ZWL 2.6 billion in the previous period to ZWL 3.4 billion.
Retail operations contributed 99 percent ( 2019-98 percent) whilst farming operations contributed 1 percent (2019-2percent) of the total turnover.
Operating profit inclusive of monetary gain increased by 10.8 percent to ZWL 701.7 million, up from ZWL 633.1 million earned in the prior 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 said in its full year trading update.
The Group registered a 16.2 percent increase in its profit before tax for the year at ZWL 392.2 million up from ZWL 337.4 million for prior year.
At Farm and City, turnover growth was subdued due to poor rains received at the onset of 2019/20 farming season.
“This had the effect of dampening farmers’ hope for a good season resulting in reduced sales volumes of fertilizers, crop seed and agro-chemicals,” said the company.
At Agrifoods there has been commendable progress reclaiming lost market share, leveraging on CFI retail’s extensive distribution network and targeting medium to large scale commercial farmers.
Entities under judicial management posted a profit before tax of ZWL 220.2 million (2019-ZWL 1.1 billion).
Crest Poultry Group’ s units, Crestbreeders, Hubbard Zimbabwe and Suncrest Chickens remained under care and maintenance during the period while the Group continues to pursue the exit of Victoria Foods from judicial management.
The Group did not declare a dividend citing the need to recapitalise its businesses.
However, during the course of 2020, the Group invested ZWL 72.5 million (2019-ZWL 41.3 million) in capital expenditure for the difference strategic units.
This expenditure covered refurbishments in Farm and City center shops and irrigation infrastructure at Glenara estates.