Milling and farming products group, CFI, is capitalising on the current agrarian reform. Sales improved by 348 percent and net profit soared by 697 percent.
According to its results for the year ending September, sales increased from $26.2 billion in 2002 to $116.8 billion last year. Net profit shot up from $2.9 billion to $23.1 billion.
Sales were generally down in terms of volumes with the most dramatic drop being in beef feeds. The decline was due to destocking by commercial farmers.
Poultry sales, however, increased because chicken had become the most affordable source of protein.
The company says stocks at its Agrifoods Division were below three months usage at the end of the year. Some $15 billion was required to replenish stocks. The situation was not likely to improve until there was a ready supply of local maize and soya.
The company commissioned its Kahl expander enabling Agrifoods to produce, among other products, full fat soya used mainly for the production of poultry feeds.
Agrimix had an excellent year with good volume growth both locally and in exports to Zambia and Malawi.
Victoria Foods also achieved real growth in turnover but volumes were down because of erratic supply of raw materials. It had to alter its sales mix by focusing on pre-packs and snack foods.
The Crest Poultry Division had a significant profit increase because of increased volumes. Demand for chicken exceeded the target of 20 percent a month.
Ross Breeders managed to have good export sales to Mozambique, Malawi, Tanzania, Kenya and Uganda.
The Retail division, which comprises Farm and City Centre, and Town and Country had a good year. Cash card sales from the Zimbabwe Farmers Union, for example, exceeded 400 0000 cash cards.
Three new stores were opened in Gutu, Rusape and Guruve.
The special division of Dore and Pitt had an excellent year largely because of its focus on new farmers. This year its priority will be the government’s “irrigate Zimbabwe” scheme.
During the year, the company set up Maitlands (Zimbabwe) Ltd to develop Crest Properties into medium and low density housing schemes.