Categories: Stories

CFI in 335 percent profit

Milling companies tend to thrive when there is a drought. CFI Holdings which owns Victoria Foods and Agrifoods was not exception. Its sales were up 150 percent from $10.5 billion to $26.2 billion during the year ended September. Profit attributable to shareholders shot up by 335 percent from $676.4 million to $2.9 billion.

The company says though Agrifoods had an extremely difficult year because of the inability of the Grain Marketing Board to supply maize, it produced excellent results through strategic purchases and control of expenses.

Its results were boosted by the launch of Agrimix, a new mineral and vitamin supplement business. The company installed a full fat soya and stockfeed plant.

Victoria Foods achieved real growth despite the fact that the prices of its core products, maize and flour, were controlled at October 2001 prices.

In the retail division, Town and Country achieved sales growth of 160 percent and opened four new stores. Farm and City was adversely affected by price controls on seed maize and fertiliser. Sales only grew by 57 percent.

A tripartite venture with the government and FSI Agricom was initiated to enable farmers to grow products for CFI’s operating companies which include maize, soya beans, wheat, sorghum and cotton seed. The scheme will receive $5 billion worth of inputs.

Vetco also produced excellent results above those of the previous year.

The poultry division also had good results. The division whose results were incorporated for the first time in the company’s results, comprises Ross Breeders, Crest Breeders International and Suncrest.

Though volumes of day old chicks were reduced due to non-availability of poultry feed in rural areas, exports of hatching and table eggs to neighbouring countries increased.

Volumes of broiler meat were down but sales have improved in the new financial year. A new poultry breeding project at Glenara was opened in August.

Land has been secured for the Botswana Hatchery.

In the specialised division, Dore and Pitt had an excellent year largely because of increased sales of equipment for new irrigation schemes.

(40 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024