CFI narrows H1 losses to $3,8 million

CFI narrows H1 losses to $3,8 million

HARARE, June 30 (The Source) – Agro-industrial conglomerate CFI narrowed its losses to $3,8 million in the half-year to March from $5,5 million on improved performance of its specialised division which registered a 132 percent growth in revenue, the company said on Tuesday.

CFI is the holding company of several agro-industrial concerns including Agrifoods, Crest Breeders, Victoria Foods as well as retail chain Farm and City centre.

“The specialised division registered improved volumes on the back of improved suppliers support. Turnover increased by 132 percent overall resulting in modest market share recovery during the period,” the company said in a statement accompanying its financial results.

“Despite this progress, capacity utilization remained low and the business requires further underpinning with improved working capital to maximize its capacity and deliver acceptable results.”

Revenue declined by 35 percent and 24 percent for the poultry and retail divisions as a result of a slowdown in consumer demand and inadequate working capital during the period.

Group turnover for the half-year declined by 18,1 percent to $34,2 million compared to $41,8 million achieved in the same period in the prior year.

Financing costs for the period increased to $2,1 million from $1,7 million in the comparable period.