CFI turnover up 24 percent

CFI Holdings’ turnover in the five months to February 28, 2017, was 24 percent up on prior year, at $22,6 million compared to $18,1 million, largely due to improved performance by entities outside judicial management.

Timothy Nyika, acting group chief executive, giving a trading update at the company’s annual general meeting last week, said both Farm & City and Glenara Estates recorded improved performance on the back of restructured balance sheet which eliminated debt and the interest burden.

Other factors that drove the good performance include a strong demand for agro-inputs on the back of the good rains.

In addition, Mr Nyika said the Group also aggressively engaged suppliers; in particular, on resumption of supply and a sustainable management formulae as well as strengthening the internal control environment.

On Glenara Estates, Mr Nyika said the joint ventures continue to do well and potato production continues to contribute positively to the Group’s performance.

“The Estate utilised a sizable hectarage on maize and soya beans which could go a long way in providing inputs to our other operations like Agrifoods,” he said.

During the period, Crest Poultry Group and Victoria Foods were largely under care and maintenance and the judicial manager has been working with the board on initiatives aimed at resuscitating operations.

“I am pleased to advise that the two arrangements have been concluded that will see the two businesses resume operations shortly,” he said.

According to Mr Nyika, Agrifoods Harare will commence operations in April 2017 while the Victoria Foods arrangement will see the company resuming production no later than July 2017.

Meanwhile, group margins increased 4,6 percent over prior year due to favourable margins from both Farm & City Retail and the horticultural concerns.

Mr Nyika said the group recorded a profit of just above break-even compared to a loss of $4 million during the same period last year.

He said resumption of operations at Agrifoods and Victoria Foods are key to the recovery of group performance to year end.

Mr Nyika added that CFI continues to work on ways of unlocking value from the various land banks owned by the company and to continue looking for JV partners for the Poultry operations.

The AGM approved auditors and directors’ fees at $112 500 (exc VAT) and $60 533, respectively. — Wires.