CFI Holdings records revenue growth

25 Feb, 2024 - 00:02 0 Views
CFI Holdings records  revenue growth

The Sunday News

Judith Phiri, Business Reporter 

LISTED agro-industrial focused group, CFI Holdings recorded inflation-adjusted revenues of $159.8 billion for the quarter ended December 31, 2023, higher than $24.8 billion in the comparative prior year period, buoyed by increased volume sales across its business units. 

In a trading update for the period under review, the company secretary, Mr Panganayi Hare said they recorded increased volume sales across their business units, despite the delayed onset of the rainy season. 

“During the period, sales volumes for the retail division’s key revenue drivers increased by 16 percent to 21 453 tonnes from 18 446 tonnes sold in the comparative prior year period. Improved fertiliser sales followed the reduction in prices to normal levels following the price spike in the prior year as a result of global supply chain disruptions emanating from the Russian-Ukrainian conflict. Agrifoods’ sales volumes for the quarter at 9 832 tonnes were 18 percent above 8 313 tonnes sold in the prior year. The significant achievement in a difficult operating environment was due to improved product availability resulting from strategic agreements with suppliers of key raw materials,” he said.

Rains

He said Victoria Foods’ wheat flour sales volumes at 3 916 tonnes remained almost stagnant against the prior year’s level, registering a three percent growth from 3 802 tonnes.  Mr Hare said this was attributable to stable wheat supplies during the quarter, however, significant growth was curtailed by intermittent power outages. 

“Maize meal volumes on the other hand, grew by 10 percent from 1 497 tonnes to 1 647 tonnes due to improved raw materials supplies. Glenara Estates potato harvest doubled to 2 989 tonnes from 1 468 tonnes for the prior period on the back of improved seed supplies. However, average selling prices achieved for the crop dropped by eight percent from the prior quarter mainly due to a glut in supply of the crop on the market. The Estate’s cattle breeding and pen fattening activities continued during the period under Joint Operations with reasonable success,” he added. 

He said as weather experts projected that the 2023/2024 agricultural season will receive lower than normal rainfall induced by the El Nino phenomenon set to reduce agricultural output in the region, management was tasked with imploring strategic raw material procurement strategies to sustain operations, while also diversifying its retail lines away from dependence on agro-inputs. Mr Hare said ongoing cost containment measures will continue to be implemented. 

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