Online Reporter
Nelson Gahadza, [email protected]
CFI Holdings recorded strong volume growth across key operating units in the half-year to March 31, 2026, buoyed by robust demand for agricultural inputs following a successful farming season.
However, intense competition from the informal sector weighed on profitability.
The diversified agro-industrial group said inflation-adjusted revenue rose 51,3 percent to ZiG2,30 billion from ZiG1,52 billion in the comparable period last year, driven primarily by higher sales volumes in its retail, milling and food manufacturing operations.
Group chairperson Ms Itai Pasi said the business delivered solid operational growth across its major subsidiaries despite a challenging trading environment characterised by aggressive competition from the informal market.
“The growth was mainly driven by higher demand for agricultural inputs during a largely successful farming season,” Ms Pasi said in the group’s half-year trading update.
Retail operations remained the group’s largest contributor to turnover, accounting for 86,33 percent of revenue from 85,04 percent a year earlier.
Food manufacturing and down-packing operations contributed 11,12 percent, while farming operations accounted for 2,18 percent and property activities 0,37 percent.
Farm & City Centre (FCC), the group’s retail division, recorded a 16 percent increase in sales volumes for its key product lines as farmers increased purchases of agricultural inputs and accessories following favourable rainfall during the 2025/26 agricultural season.
Ms Pasi said FCC would continue broadening its product range to ensure profitability beyond the peak agricultural selling season.
Agrifoods, the group’s milling and down-packing business, also posted solid growth, with sales volumes increasing 13 percent compared to the same period last year, supported by stronger aggregate demand for its products.
“Management remains focused on growing Agrifoods’ market share notwithstanding increased competition in the feed sector,” Ms Pasi said.
She noted that the standout performer during the period under review was Victoria Foods, which staged a significant operational turnaround after improved availability of wheat and maize raw materials.
Sales volumes for wheat flour surged 139 percent while maize meal volumes increased 88 percent compared to the prior year.
The company said management was focusing on strategic procurement ahead of the new harvest to sustain production and improve supply security.
Despite the strong top-line performance, profitability came under pressure as margins narrowed amid heightened competition from informal traders, who continued to exert downward pressure on prices across several product categories.
Profit before tax declined sharply to ZiG78,76 million from ZiG593,24 million recorded in the corresponding period last year.
However, the result was supported by unrealised foreign exchange gains of ZiG88,51 million on foreign currency-denominated loans, compared with an unrealised exchange loss of ZiG55,20 million during the prior period.
Ms Pasi said the group significantly increased capital investment during the six months, spending ZiG69,85 million on property, plant and equipment compared with ZiG6,64 million in the previous corresponding period.
She said the investment was directed mainly towards retooling Victoria Foods, acquiring critical plant spares and reviving hatchery operations under Crest Poultry Group.
Within the farming division, Glenara Estates experienced mixed fortunes.
Potato production volumes declined by 5 percent after heavy rains disrupted harvesting operations.
However, stronger market conditions resulted in average potato selling prices increasing by 10 percent because of reduced supplies on the market.
In the property portfolio, CFI said it continued developing plans for Saturday Retreat Estate after the Supreme Court ruled in February 2023 in favour of Crest Breeders International, confirming the company’s rights over the property.
“The entity remains seized with formulating a development strategy as the Group looks to enhance its synergies with the retail unit and diversify its portfolio,” Ms Pasi said.
The group said legal proceedings relating to Langford Estates remain before the relevant tribunals, with updates to be provided once there is further progress.
Meanwhile, Crest Poultry Group’s Crest Breeders and Suncrest Chickens businesses remained under care and maintenance during the review period as the company continued evaluating opportunities to leverage its poultry infrastructure and established brands.
