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Enacy Mapakame
Agro-industrials entity CFI Holdings Limited profit for the six months to March 31, 2019 surged 243 percent to $7,29 million compared to $2,12 million recorded during the comparative prior year on increased volumes.
Turnover for the period went up 43 percent to $47,2 million from $33 million prior year comparative. Retail operations continue to be the group’s back bone accounting for 96 percent of total turnover while farming business accounted for the remaining 4 percent.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period rose to $11 million from $3,7 million in the comparable period on the back of enhanced cost containment measures and improved volumes.
During the period under review, the group repaid major borrowings and advanced $2,2 million to Agrifoods. As a result, CFI, for the first time since 2009 registered a net finance income of $82 000 against net finance costs of $221 000 in the comparable period.
Entities under judicial management reported a $1,1 million before tax profit from $900 000 losses incurred in the prior year.
Basic earnings per share went up to 6,83 cents from 1,99 cents.
At the retail business, Farm and City, there was a recorded 45 percent increase in turnover. The fiscal and monetary changes announced during the period saw consumer demand spike as the market rushed to convert monetary balances to commodities and goods.
Glenara Estates established 107 hectares of irrigated soya beans and 459 hectares of dryland soya beans in addition to the table potato production. CFI indicated that the entity is now profitable following its farm recapitalisation programme undertaken in the previous year.
On the property side, legal proceedings to reverse the Langford Estates transactions have commenced. CFI has been embroiled in a wrangle with Fidelity over the sale of Langford Estates in Harare South.
Fidelity acquired Langford from the agri- industrial group in a land-for-debt swap deal, which the insurance firm intends to develop into a residential suburb.
However, CFI shareholders Willoughby Investments Private, who with other shareholders control 40 percent stake in CFI, pushed for a reversal of the Langford Estate deal alleging it was done fraudulently.
For milling operations, Agrifoods and Victoria Foods made progress towards reclaiming market share leveraging on the group’s retail extensive distribution network and targeting medium to large scale commercial farmers.
Victoria Foods continued with flour toll milling arrangements with other strategic business units remaining under care and maintenance.
Poultry business incorporating Crest Breeders, Hubbard Zimbabwe and Suncrest Chickens remained under care and maintenance during the period.
The group is remains seized with strengthening Farm and City operations and improving profitability for Glenara Estates’ farming business as well as preserving shareholder value.
CFI did not declare a dividend.
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