CFI reports plausible results 

Source: CFI reports plausible results | The Herald 03 FEB, 2020

CFI reports plausible results

Enacy Mapakame

Agro-industrial group, CFI Holdings Limited’s operating profit for the year to September 30, 2019 jumped 141 percent to $43 million compared to $20,2 million recorded in the previous year.

The group attributed the improvements to growth in merchandise in retail and enhanced cost-containment efforts.

Profit before tax rose 141 percent to $44,4 million.

Basic earnings per share grew 112 percent to 28,72 cents.

At $347,8 million, turnover for the year was 25,2 percent above prior year’s $277,9 million.

Retail operations remained the biggest contributor accounting for 98 percent of total turnover while farming operations accounted for the remaining 2 percent.

During the year under review, CFI incurred financing mark-to-market costs of $38,9 million arising from the loan raised to finance the exit of entities from judicial management.

According to the group, entities under judicial management posted a profit before tax of $144 million against losses of $4,1 million incurred in the prior year on the back of monetary gains of $171,9 million.

CFI invested $5,4 million in replacement capital expenditure, driven mainly by branch refurbishments and fleet renewal in CFI Retail.

The retail division recorded a 200 percent jump in turnover as demand remained relatively firm throughout the year, with the first half benefitting from panic induced consumer demand as customers were in a rush to convert monetary balances to commodities and goods.

At Glenara Estates, 1 102 tons of soya and 101 tonnes of maize was harvested in the 2018/19 season.

Table potato production continued and performed reasonably well during the period.

The farm operated profitably although yields were negatively affected by the poor agricultural season for cereals.

Collections for stand purchases under the group’s property development (Saturday Retreat) continued from residents during the period and the group is now seized with finalising layout plans regularization and development preliminaries to give impetus to the development stage of the project.

The group indicated legal proceedings to reverse the illegal Langford Estates transaction are still underway.

The Langford Estate transaction has been contentious among the group’s main shareholders with allegations the transaction was fraudulent and involved related parties.

Langford Estate was sold to Fidelity Life for residential development.

CFI also indicated the group paid creditors for its Crest Poultry scheme of arrangement, which was approved by creditors in May 2019.

Resolution of scheme’s foreign creditors is however still underway and the Board anticipates resolution of the same before end of first quarter for the current financial year.

In the outlook, the group says it will keep its focus in capitalising Crest Poultry Group which recently came out of judicial management resolving Victoria Food’s foreign creditors’ obligations.

Currently, CFI shares are not trading on the Zimbabwe Stock Exchange after its suspension on January 2, 2018.