ZIMBABWE – CFI Holdings, an agro-trading giant, has reported a revenue jump of 39.4% in the financial year that ended September 2022 thanks to an impressive performance from its subsidiary Victoria Foods .
According to Ms. Itai Pasi, the chairperson of the company revealed that the group inflation-adjusted revenue increased from $35.39 billion (US$97.8M) in the previous year to $49.37billion (US$136.4M).
“The increase was attributable mainly to improved sales volumes from Victoria Foods underpinned by continued recapitalization of the business unit,” said Ms. Pasi.
From the financial report, its milling subsidiary Victoria Foods contributed 17.4% compared to 4.3 %recorded in 2021.
The trajectory results were attributed to the availability of raw materials for the milling company especially wheat due to the high yield realized the previous winter.
“The flour mill operated at satisfactory capacity levels for the year on the back of reasonable wheat availability from the previous winter season despite the maize mill operating below-expected capacity levels given the poor production output in the 2021/22 agricultural season,” said Ms. Pasi.
Victoria Foods Limited recovery and driving CFI’s profits are impressive given the company was on a brink of collapse.
The subsidiary was placed under provisional judicial management in 2016 to allow for dept restructuring, re-organization, and recapitalization.
“The entity’s main business thrust in its first year after its exit from judicial management was ensuring the market is supplied with quality consumer household goods thereby enhancing Victoria Foods’ brand presence across various product categories,” said Ms. Pasi
In addition, Pasi said that the group also invested $548, 19 million from $540, 6 million in 2021 covering IT infrastructure for various Farm & City Centre Agrifoods, poultry, and irrigation infrastructure at Glenara Estates.
The group further opened Builders City branch and refurbished the Sanyati and Chitungwiza branches to increase the trading space and bring convenience to customers.
Moving into 2023, the group remains optimistic about the overall medium-term trajectory of the economy, as a result of anticipated growth driven by the agricultural sector and increasing diaspora
CFI Holdings operations include Victoria Foods, Farm and City, Glenara Estates, Langford Estates Suncrest, Agrifoods, and Crest Poultry.