Online Reporter
Nelson Gahadza
Senior Business Reporter
CFI Holdings recorded a mixed performance across its business units for the year ended September 30, 2025, with improvements in retail and farming operations offset by a sharp decline in the food manufacturing business.
Group chairperson Ms Valerie Pasi said in a statement of financials for the review period that the retail operations remained the backbone of the business, benefiting from improved agricultural activity during the year.
Challenges such as power supply disruptions, procurement constraints and competition from the informal sector continued to weigh on the overall performance.
As a result, revenues declined by 5,46 percent to ZiG2,72 billion from ZiG2,87 billion in the same period the prior year.
“This largely reflects on the increased competition mainly from the informal sector, which continued to erode volumes and pricing power across formal retail channels,” she said.
During the year under review, retail operations accounted for 83,53 percent of group turnover, up from 82,61 percent in the prior year.
Food manufacturing and down-packing operations contributed 12,99 percent of turnover, down from 15,68 percent, while farming operations chipped in with 2,82 percent from 1,11 percent in the same prior year period.
Group properties contributed 0,66 percent of turnover, slightly higher than the 0,60 percent recorded in 2024.
“Despite the pressure on revenues, the group returned to profitability, buoyed by foreign currency exchange movements,” said Ms Pasi.
In the period under review, CFI Holdings recognised unrealised exchange gains of ZiG441,2 million on its foreign currency-denominated loans, compared to an unrealised loss of ZiG877,3 million in the prior year.
“As a result, the group posted a profit before tax of ZiG448.26 million, reversing a loss before tax of ZiG875,04 million incurred in the previous financial year,” she noted.
The group’s capital expenditure increased significantly during the period, with the group investing ZiG84,79 million into property, plant and equipment, compared to ZiG20,40 million in 2024.
The bulk of the investment was directed towards retooling and plant spares for Glenara Estates and Victoria Foods, as well as efforts to resuscitate hatchery operations within the poultry division.
Ms Pasi said the group’s operational review reflected both resilience and ongoing adaptation to a challenging operating environment.
In the retail segment, Farm & City Centre (FCC) recorded a notable improvement in volumes. Sales volumes for FCC’s key volume drivers increased by 19 percent compared to the same period in the prior year.
“The growth was driven by improved sales of agricultural products due to improved rains and lower selling prices,” she said.
She noted that the retail division would continue to diversify its product portfolio to reduce over-dependence on agricultural sectors and strengthen the entity’s adaptability to economic volatility as management responds to fluctuating demand patterns and macroeconomic uncertainty.
Agrifoods, another key retail unit, also recorded volume growth, with sales volumes increasing by 8 percent year-on-year.
Ms Pasi attributed the improvement to stronger aggregate demand for the products, although management acknowledged rising competitive pressures in the feed sector.
“The group remains focused on growing Agrifoods’ market share despite the heightened competition,” said Ms Pasi.
Peter Tanyanyiwa