ZIMBABWE – CFI Holdings Limited, a diversified agribusiness company in Zimbabwe, recorded 243% increase in profit to US$7.29 million during six months ended March 31, 2019.

The company which operates Agrifoods and Victoria Foods divisions in the country saw its turn over during the six months period grow 43% to US$47.2 million from US$33 million in a comparative period of the previous year.

Retail operations continued to be the group’s back bone accounting for 96 percent of total turnover while farming business accounted for the remaining 4 percent, an update by The Herald reveals.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period rose to US$11 million from US$3.7 million in the comparable period on the back of enhanced cost containment measures and improved volumes.

During the period under review, the group repaid major borrowings and advanced $2.2 million to Agrifoods. The Farm and City retail division recorded a 45 percent increase in turnover.

The company also said that following the recapitalisation Glenara Estates in the previous year, the entity has now returned to profitability.

The division established 107 hectares of irrigated soya beans and 459 hectares of dryland soya beans in addition to the table potato production.

CFI also noted that its milling operations, Agrifoods and Victoria Foods made progress towards reclaiming market share leveraging on the group’s retail extensive distribution network and targeting medium to large scale commercial farmers.

Victoria Foods continued with flour toll milling arrangements with other strategic business units – Including the poultry business which incorporates Crest Breeders, Hubbard Zimbabwe and Suncrest Chickens – remaining under care and maintenance.

In May this year, the group received US$33 million working capital from Dominion Trading to revamp operations in Agrifoods and Victoria Foods.

Dominion Trading will invest US$18 million into Victoria Foods and US$15 million into Agrifoods.

The capital injection from Dominion Trading will also allow the food processing giant to undertake a scheme of arrangement that will allow the firm to revitalise and be fully operational.

The group said it will continue focusing on strengthening Farm and City operations and improving profitability for Glenara Estates’ farming business as well as preserving shareholder value.