Categories: Stories

CFI loss widens to $8.8million

Conglomerate CFI Holdings losses widened to $8.8 million loss for the full-year to September from $6.5 million last year’s on falling revenue from key divisions and lack of working capital.

Group turnover fell 17 percent to $72.1 million against the backdrop of flat revenues for its retail division and receding sales for its poultry and specialized services.

Company chairman Simplisius Chihambakwe said the group also incurred  $1 million in retrenchments costs in the poultry division during period.

Hubbard Zimbabwe had a difficult year owing to increased sales volatility and collapse for demand for day old chicks, particularly in the second quarter.

Agrimix, however maintained margins and profitability despite volumes declining by 38 percent, the company said.

“Rationalisation costs, limited working capital availability, overall low capacity utilisation and heavy financing costs weighed down the business performance in the period,” Chihambakwe said in a statement accompanying the delayed financials.

He said the group is also considering improving efficiencies at Suncrest abattoir which had been under care and maintenance since November, 2013.

Going forward, Chihambakwe said revenue growth will be driven by property development. He said CFI has already concluded a joint venture with Craftcall Investments to develop 635 stands at Crest Township.- The Source

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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.

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