CFI Holdings revenue up
ZIMBABWE Stock Exchange-listed conglomerate CFI Holdings Limited has recorded a revenue increase of 9.9% attributed to an increase in retail division sales volumes for the first quarter ended 31 December 2022 compared to the prior year.
The sales volumes for the retail division’s key revenue drivers increased by 9% relative to the corresponding year.
Economic challenges in the operating environment had an adverse impact on the fertilizer and Agrifoods sales volumes.
“Agrifoods’ sales volumes performance was flat at prior period levels as demand for stockfeeds remained stagnant in the face of general economic challenges,” said the group.
The Ukraine-Russia war disrupted global supply chains, causing the increase in prices, which constrained the fertilizer sales.
“This was further exacerbated by the depressed producer prices for tobacco and maize coming into the current season,” added the company.
Despite the successful winter wheat harvest season experienced last year, Victoria Foods division sales declined by 19.8% in the period under review.
“This was a result of the flour mill operating under subdued capacity following power supply shortages, whilst maize supply constraints subdued the maize mill operations,” the group said.
During the quarter, Glenara potato harvest decreased by 5% as planting was constrained by seed supply shortages.
However, to assist in underpinning raw material supplies to Victoria Foods and Agrifoods, the estate increased its area planted under commercial maize and soya bean by 11% and 19% respectively compared to prior year.
The poultry-processing company projects that aggregate demand would be high on the back of the good agricultural season.
Therefore, they will remain focused on exploiting any opportunities to contribute to the overall business performance, whilst monitoring its operating costs in light of hardening costs and periods of stagnated growth.