Agriculture, construction buoy CFI

Spread the love

AGRO-INDUSTRIAL firm CFI Holdings says its performance for the three months to June 30, 2021 was boosted by positive developments in agriculture and construction.

Management reported a 169 percent jump in sales volumes from the three-month period to March.

“The growth was attributable to an increase in aggregate demand following the relatively good 2020/2021 rainy season, which boosted both summer crops and the tobacco season,” reported management.

“Also contributing to the growth during the period, though modest, was the resurgence in construction activities.”

CFI also benefited from growing demand for Agrifoods’ stockfeed after it exited judicial management last year, as well as opening additional retail stores during the period.

Farm & City reopened its Chipangayi branch in May 2021 and added another branch in Masvingo at the beginning of June 2021.

At Glenara Estates, both maize and table potatoes harvested increased by 42 percent and 85 percent, respectively.

Victoria Foods’ legacy foreign and local creditor debts were fully repaid during the period, which means that subsidiary is edging closer to exiting judicial management.

CFI’s inflation-adjusted revenue for the quarter increased by 88 percent relative to the comparative period, while margins softened to reflect a more stable pricing regime as inflation continues to slowdown.

Average month-on-month inflation during the third quarter declined to 2,7 percent against 21,5 percent for the comparable period and 4,1 percent in the first half of the year.

Average annual year-on-year inflation also slowed down to 154,2 percent against 762,8 percent in the same period a year ago.

Meanwhile, the retail segment continues to dominate contribution to total group performance.

Retail operations contributed 94,9 percent to turnover, while farming operations contributed 5,1 percent.