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HARARE – Agri-industrial concern CFI Holdings (CFI) reported a 34 percent increase in revenue to $33 million for the half year to March 31, 2018 compared to $24 million in the same period last year on increased volumes, cost containment measures.
The retail operations contributed 95, 4 percent of the total turnover while the farming division 4, 6 percent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the period improved by 80 percent to $3,7 million against on the back of increased volumes, enhanced cost containment efforts and improvement in margins.
CFI registered a 109 percent growth in profit before tax to $3, 2 million compared to $1, 5 million achieved in the prior period as financing costs increased by a marginal $33 000 to $221 000.
The loss before tax incurred by entities under Judicial Management (and not consolidated) during the half- year declined by 36 percent to $0, 9 million compared to a loss of $1, 5 million in the comparable prior year period on resumption of operations at Agrifoods and the favorable impact of toll milling arrangements entered into at Victoria Foods.
Capital expenditure was during the period was $0, 65 million from $0, 16 million while cash generated from operations improved on improved profitability.
The retail division reported a 34 percent increase in revenue to $31, 5 million as the group prioritized restoring normal supplier relations through resolving old legacy debts, and this was largely achieved.
Margins improved by 6 percent largely as a result of better trading terms with a growing and confident supplier base, after the entity cleared cost of its legacy debts during the period.
CFI recapitalised farming activities at Glenara Estates with purchase of $1 million worth of new farming equipment and machinery.
Resultantly, the firm cropped 450 hectares of maize and 100 hectares of soya beans, in addition to table potato production.
The Estate however made a marginal loss in the first half of the year due to the unfavourable equipment hire charges and joint venture arrangements with a company connected to a former director.
CFI acting chairman Itai Pasi said the Estate was however projected to be profitable going forward assisted by the favourable impact of the US$1 million re-capitalisation.
The company also resumed production at the Harare Agrifoods plant whilst Victoria Foods Harare flour mill plant entered into toll milling arrangements. Plans are underway to resume snacks production in the second half of the year.
The poultry division- Crest Breeders, Hubbard Zimbabwe and Suncrest Chickens remained under care and maintenance during the period.
CFI had a turbulent year last year which resulted in the sacking several directors on allegations of poor corporate governance.
The counter is currently under suspension at the Zimbabwe Stock Exchange (ZSE).
Management is however hopeful of growing profitability in the remaining half of the year and going forward.
The company will also consider re-capitalisation options including rights issue.
Online Reporter