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Agriculture Reporter

ZIMBABWE Stock Exchange (ZSE) listed agro-trading giant CFI Holdings is enjoying a purple patch on the backdrop of a 39, 4 percent jump in revenue originating from Victoria Foods’ improved sales volume.

In a financial statement for the year ended September 2022, the company chairperson Ms Itai Pasi said the group inflation-adjusted revenue for the year increased by 39, 4 percent from $35, 39 billion (local currency) in the previous year to $49, 37 billion.

“The increase was attributable mainly to improved sales volumes from Victoria Foods underpinned by continued recapitalisation of the business unit,” said Ms Pasi.

The company’s milling operations from Victoria Foods contributed 17, 4 percent compared to 4, 3 percent recorded in 2021.

“The flour mill operated at satisfactory capacity levels for the year on the back of reasonable wheat availability from the previous winter season despite the maize mill operating below expected capacity levels given the poor production output in the 2021/22 agricultural season,” said Ms Pasi.

In addition, the group continues to invest in its milling operations in order to underpin its long-term competitiveness.

“The entity’s main business thrust in its first year after its exit from judicial management was ensuring the market is supplied with quality consumer household goods thereby enhancing Victoria Foods brand presence across various product categories,” said Ms Pasi.

In addition, the group invested $548, 19 million from $540, 6 million in 2021 covering IT infrastructure for various Farm & City Centre Agrifoods, poultry and irrigation infrastructure at Glenara Estates and opened Builders City branch and refurbished the Sanyati and Chitungwiza branches to increase the trading space and bring convenience to customers, said Ms Pasi.

As climate change continues to affect the agricultural sector, the group invested in irrigation infrastructure to climate proof production following reduced agricultural output for the year ended September 2022.

“The company invested in additional irrigation infrastructure in order to underpin horticultural production going into the future following a 13 percent decrease of maize and soya beans output compared to the previous season as a result of delayed planting following late onset of rains,” said Ms Pasi.

The agriculture industry is set to grow by a staggering 4 percent in 2023 as the Government ramp up support for the sector towards expansion amid indications of good rains for the summer cropping season.

“The group remains optimistic on the overall medium-term trajectory of the economy, as a result of anticipated growth driven by agricultural sector and increasing diaspora remittances,” said Ms Pasi.