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Elton Manguwo
ZIMBABWE Stock Exchange (ZSE) listed agriculture entity CFI Holdings is pinning its performance growth on the country’s positive agriculture season following a depressed financial quarter for 31 December 2022.
In a statement the company secretary Panganayi Hare said despite the challenging operating environment, the group was projecting that aggregate demand would be high on the back of an anticipated good agricultural season.
“The group remains optimistic on the overall medium-term trajectory of the economy, as a result of anticipated growth driven by the agricultural sector,” he said.
Agriculture performance boosts consumer spending on basic food stuffs, farming inputs and farming equipment.
The Government in the 2023 National budget highlighted that the agriculture industry was set to grow by a staggering 4 percent in 2023 amid ramped up support for farmers on the backdrop of good rains in the summer cropping season.
“The group will therefore remain focused on exploiting any opportunities that contribute to the overall business performance,” said Hare.
CFI invested $548, 19 million (local currency) up from $540, 6 million in 2021 to cover IT infrastructure for various Farm and City Centre, Agrifoods, poultry and irrigation infrastructure at Glenara Estates, opened Builders City branch, refurbished the Sanyati and Chitungwiza branches to increase the trading space and bring convenience to customers.
The trading environment witnessed the resurgence of acute power supply shortages affecting the country’s productivity levels and increasing the costs of doing business.
“Despite Victoria Foods having stable wheat supplies during the quarter following the country’s successful winter wheat season, sales volumes contracted by 19, 8 percent compared to the previous year. This was a result of the flour mill operating under subdued capacity following power supply shortages, while maize supply constraints subdued the maize mill operations,” said Hare.
In addition, fertiliser sales were constrained by the commodity’s significant real price increases following the war in Ukraine, which disrupted global supply chains.
Compared to the same period the previous year, Glenara potato harvest decreased by 5 percent as planting was constrained by seed supply shortages.
However, the estate increased its area planted under commercial maize and soya bean by 11 percent and 19 percent respectively compared to prior year.
Hare said the increase in planted area should assist in underpinning raw material supplies to Victoria Foods and Agrifoods.
“The entity’s main business thrust in its first year after its exit from judicial management was ensuring the market is supplied with quality consumer household goods thereby enhancing Victoria foods brand presence across various product categories,” said Mr Hare.
Online Reporter