PHILLIMON MHLANGA
Diversified conglomerate CFI Holdings Limited’s subsidiary Crest Poultry Group has exited judicial management.
CFI also expects its food processing unit Victoria Foods, to exit receivership soon.
The two units were placed under judicial management in 2016 after the High Court gave the nod to CFI’s application for voluntary placement.
“Notwithstanding the constrained business environment, your board is pleased to advise that Crest Poultry Group exited judicial management shortly after the reporting period, in January 2020,” acting chairperson Itai Pasi said in in a statement accompanying results.
“The board equally looks forward to the imminent exit of Victoria Foods from judicial management before the close of the FY2020 financial year.”
Pasi said CFI has raised ZWL$42.5m loan to fund the payment of Crest Poultry Group’s scheme creditors. The working capital will enable the company to re-launch the businesses—Crest Poultry Group and Victoria Foods—now under the group’s control.
CFI has been the subject of a bitter fight between major shareholders, Stalap Investments and Messina Investments, which control 41% and 42% respectively.
Stalap is an investment vehicle for shares held by in CFI by the National Social Security Authority and ZIMRE Holdings while Messina is controlled by British tycoon, Nicholas van Hoogstraten.
Pasi said disregarding financing costs associated with the cost of taking entities out of judicial management, the businesses under the board’s control in 2019 were profitable in historical and restated terms.
The group reported a 25.2% increase in inflation-adjusted turnover to ZWL$347.8m during the year to September 30, 2019, from ZWL$277.9m in the comparative period in the prior year. Retail operations contributed 98% while farming operations contributed 2% of the total turnover.
Operating profit improved by 141.3% to ZWL$43.2m during the reviewed period from ZWL$20.2m due to increased merchandise volumes in retail and enhanced cost containment efforts.
The group recorded a profit before tax of ZWL$44.4m from ZWL$18.4m the comparative prior period.
Entities under judicial management posted a profit before tax of ZWL$144m from a loss of ZWL$4.1m incurred in the prior period. This was on the back of monetary gains of ZWL$171.9m during the reviewed period.
Profit for the year was ZWL$31.1m from ZWL$14.5m.
Total assets grew ZWL$417.03m from ZWL$339.5m.
