Diversified group CFI Holdings Limited plans to increase exports of its Hubbard brands, parent birds and hatching eggs into the Southern African region this year, an official has said.
The company’s group chief executive officer Steve Kuipa told shareholders at an analysts briefing recently that export sales for Hubbard Zimbabwe Limited grew by 231% for the half-year ended March 31 2011.
The export sales grew to $188 000 from the previous first six months performance of $56 000.
“We project to earn $300 000 this year through parents and hatching eggs and we will be exporting to Mozambique, Zambia, Malawi, Tanzania and Democratic Republic of Congo,” Kuipa said.
He said the group used to earn $1,1 million from exports sales in 1997 at the peak of the company’s exports period.
Capacity utilisation level for the subsidiary is now estimated at 95%.
An official from Hubbard told NewsDay: “We hope to increase production to the region through quality production and competitive prices. Last year our exports were coming through but very slowly. ”
For the half-year ended March 31 2011 Hubbard Zimbabwe local sales turnover increased by 78% to $4,9million from $2,8million.
The broiler day-old chick volumes grew to $4,8 million from $3 million while hatching eggs sales were up by $1 million from $351 00 and exports of hatching eggs resumed during the period under review.
The group accessed $3,8 million from PTA Bank and $600 000 through the Zimbabwe Trade Revival Facility.
Of the total amount $1,8 million had been invested in Hubbard Zimbabwe hatchery.
The group’s subsidiaries Victoria Foods, Agrifoods, Hubbard Zimbabwe, Crest Breeders International, Suncrest Chickens and Glenara Estates recorded a steady increase in capacity utilisation for the half-year ended March 31 2011.
Poultry contributed 46%, retail 33%, specialised units 21% to revenue, compared to last year when the retail division was the major contributor to turnover.
CFI Holdings Limited recorded a loss before tax of $662 984 for the half-year ended March 31 against a loss before tax of $366 450 for the same period in 2010.
According to a Tetrad weekly update CFI has been making losses which it blamed on the failure to recapitalise, the influx of imported chicken or rather on the government’s unwillingness to charge duty on certain basics which the company manufactures.