BUSINESS REPORTER
Diversified conglomerate CFI Holdings’ net loss widened to ZWL$4.1bn in the year to September 30, 2022 from ZWL$1.5bn in the previous financial year despite a surge in revenue.
CFI, which operates Victoria Foods, Agrifoods, Farm & City Centre, VETCO, Suncrest, Hubbard Zimbabwe, Glenara Estates, Saturday Retreat, Suncrest Park and Langford Estates, among others, reported a 40% surge in revenue to ZWL$49.3bn in the reviewed period from ZWL$35.4bn in previous year.
CFI board chairperson, Itai Pasi, attributed the loss to massive exchange losses.
“The group incurred unrealised exchange losses of ZWL$ 6.1bn on its foreign currency denominated loans. As a result, the group posted a loss before tax of ZWL$2.59bn against a loss of ZWL$0.75bn for the prior year. The group incurred a ZWL 0.77bn inflation-adjusted operational loss (inclusive of monetary gains) before depreciation, impairment and financing costs compared to an operational profit of ZWL$0.4bn in prior year,” Pasi said in a statement accompanying financial results published this week.
Overall, retail operations contributed 80% compared to 91.9% in 2021 while milling operations at Victoria Foods contributed 17.4%.
On the other hand, farming operations accounted for 2.6% of the group turnover.
Maize and soya beans output at Glenara Estates was 13% down from the previous season as a result of reduced planting following the late onset of rains.
The potato harvest increased by 10%, whilst yields improved by 7% compared to the prior year.
The Estate invested in additional irrigation infrastructure to underpin horticultural production going into the future. In addition, cattle pen fattening and breeding operations were maintained with reasonable success.
Pasi, however, is optimistic the group will turn the fortune around after CFI’s property unit, Saturday Retreat, secured permits and other development preliminaries pursued during the year.
“Priority will also be given to the development of low-cost housing delivery in Harare South in support of Government’s Vision 2030 on housing. The scourge of land barons will need resolution to make way for progressive, orderly infrastructure deployment and service delivery to the various settlements,” she said.
Pasi said the company was also banking on its milling unit, Victoria Foods, which exited receivership in 2021.
“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 the company is traditionally known for. Your board is happy to report that Victoria Foods products have been warmly received in the market,” Pasi said.
She said the group will invest more in milling operations to ‘underpin’ the company’s competitiveness.
“The group will continue to invest in its milling operations in order to underpin its long-term competitiveness,” Pasi said.
