Zimbabwe: CFI Volumes Jump 80%

CFI Holdings Limited volumes jumped 80 percent in the year to September 30, 2021 largely driven by improved aggregate demand following a good 2020/21 summer cropping season. The diversified agriculture focussed company said the improved volume performance was witnessed across most of its key product lines or segments.

Retail operations dominated the revenue mix contribution recording 91,4 percent whilst farming operations accounted for 3,7 percent of inflows from 3,1 percent in the prior year.

CFI subsidiary, Victoria Foods’ exit from judicial management was instrumental to the growth in the group’s revenue after the division’s milling operations contributed 4,9 percent to the turnover.

Resultantly, the agro-focused group’s historical revenue for the year increased by 308 percent to $7,83 billion, significantly higher than the $1,92 billion it managed the previous year.

CFI Holdings board chairperson Itai Pasi said the relaxed lockdown environment experienced in 2021 led to better trading conditions (improved trading hours) thus promoting volume uptake.

“The economic environment continued to be restrained by the impact of the Covid-19 pandemic as the country traded under varying degrees of lockdowns throughout the year. Fortunately, for the greater part of the year, the group’s businesses operated under normal trading conditions. The economic improvements registered at the beginning of the year, characterised by relatively stable exchange rates and declining inflation,” said Ms Pasi.

She however, bemoaned the late distribution of auction funds, which she said led to reduced confidence by the businesses, as this also drove widening of the gap between the official and open market exchange rates.