CFI Holdings profit up 91% on good retail performance
Phillimon Mhlanga
HARARE – CFI Holdings reported a 91 percent surge in profit to $2,1 million during the six months to March 31 2018 from $1,1 million in the same period in prior year.
Total revenue for the group jumped 34 percent during the reviewed period to $33 million compared to $24,6 million reported in the same period in the previous year.
In a statement accompanying its financial results published Thursday, acting group chairman Itai Pasi said retail operations contributed more than 90 percent of the total turnover.
“Of the total turnover, retail operations contributed 95,4 percent and the farming operations 4,6 percent,” Pasi said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period went up by 80 percent to $3,7 million compared to $2 million recorded in prior period.
Pasi attributed the increase in EBITDA to increased volumes, enhanced cost containment efforts and improved margins.
Finance costs for the reviewed period increased by a marginal $33 000 to $221 000 compared to $188 000 in prior period.
The group’s capital expenditure during the reviewed period was $0,65 million compared to $0,16 million in the same period the previous year.
CFI, which operates Farm & City, Glenara Estates, Maitlands Zimbabwe, and Saturday Retreat reported a decline in its borrowings to $2,26 million from $3,8 million owed in prior year, after it paid off the PTA loan.
Pasi indicated that CFI was in the process of verifying the remaining borrowings “given certain irregularities and conflict of interest on the part of the lender and a former director which came to our attention”.
Farm & City recorded a 34 percent increase in turnover to $31,5 million while margins improved by six percent because of better trading terms.
Grenara Estates was recapitalised during the period under review to the tune of $1 million which was used to procure new farming equipment and machinery. Part of the funds was used to repay the PTA loan. The unit made a marginal loss in the period under review due to the unfavourable equipment hire charges and joint venture arrangements with a company linked to a former director of CFI.
CFI also has several subsidiaries which were placed under judicial manager, Reggie Saruchera of Grant Thornton. These include Agrifoods, Victoria Foods, Crest Poultry.
Entities under judicial management incurred $0,9 million during the period under review compared to $1,5 million recorded in the same period the previous year, representing a decline of about 36 percent. The decline was due to resumption of operations at Agrifoods and the favourable impact of toll milling arrangement entered into at Victoria Foods.
