CFI revenue drops 45pct in 8 months

CFI revenue drops 45pct in 8 months

HARARE, July 15 (The Source) – CFI Holdings has seen revenue for the 8 months to May 31 falling by 45 percent to $23,1 million but expects to reduce the loss amount by year end.

CFI is the holding company of agro-industrial entities Agrifoods, Crest Breeders, Victoria Foods as well as retail chain Farm and City Centre. Early this year, it instituted a management shake-up in a bid to revive its fortunes, retiring its long standing chief executive Stephen Kuipa.

Chairman Simplicius Chihambakwe and another board member, P Bwerinofa also left the company in April, while former finance director Acquiline Chinamo quit at the end of last year.

The company’s acting chief executive Timothy Nyika told shareholders at the group’s annual general meeting that the restructuring and recapitalization efforts carried over from prior year will continue to drive the group’s turnaround.

During the period, margins were marginally below last year’s achievements due to the impact of reduced capacity utilisation in the poultry and milling divisions.

Nyika said year to date turnover for the poultry division declined 62 percent year on year due to the impact of discontinued loss making entities.

Milling volumes at Victoria Foods declined 57 percent on the back of limited funding.

During the period, the group’s bank borrowings declined to $5,8 million compared to $19,1 million previously as a result of the $16 million debt assumed by Fidelity Life Assurance effective October 17, 2015 in exchange for 81 percent of CFI’s Langford Estate.

The group is working with reputable developers to further unlock value on its remaining land, Nyika added.

Financing costs were down at $1,1 million compared to $2,7 million same period last year.

Nyika said the in the 8 months, the group embarked on horticultural activities, mainly table and seed potato production on its Glenara farm and these have yielded exciting results that will enhance it’s fortunes going forward.

Turnover for Agrifoods was down 66 percent due to limited funding despite demand for stock-feed remaining high.

The company is finalising plans that will see Farm and City increasing its activities.