CFI holdings registered an operating loss before tax of $1,1 million despite the growth in contributions by its poultry division to total group revenues of $98 million.
The poultry division contributed 48% to revenues in the full year to September 30 up from 41% it contributed in the previous financial year.
CFI revenues jumped 34 % to $98 million from $73 million during the same period last year largely driven by poultry production.
Group finance director Acquiline Chinamo said its specialized division contributed 24% down to 28 % in 2010 while the retail division added 28% compared to 31%. Volume growth was inadequate to offset slackened margins and overheads which lagged behind revenue growth by 11%, said Chinamo. Chinamo said Hubbard Zimbabwe competition in the day-old-chick market intensified during the period under review. Hubbard sold 11 million day-old chicks up from 8, 5 million produced and sold in 2010, she said Glenara Estates continued to produce hatching eggs for Hubbard Zimbabwe as well as broilers for the Suncrest Abattoir. She said a farm belonging to Crest Breeders International was converted into a table egg production facility, while broiler production was terminated in the first half of the financial year. This was driven by a number of factors which included perennial water challenges as well as inherent limitations in the ageing infrastructure, said Chinamo Suncrest Chickens production volumes grew by 10%. The entitys profitability was hampered by the ageing plant and high input costs driven by escalation in soya and maize prices. Financing cost for the year increased to $2, 76 million from $2, 16 million. Discontinued operations at Honeydew contributed a loss of $422 000. The group invested a $2,6 million in capital expenditure and $140 000 in the Beira Grain Terminal project. Chinamo said the group accessed additional borrowings of $1,1 million which were used to fund working capital requirements as poultry raw material prices escalated in the second quarter of the year. AgriFoods experienced a 39% growth, registering 71 998 tonnes of poultry feeds up from 51 839 tonnes achieved in the previous year. Poultry feeds continued to be the most dominant category as a result of its viability and population with small and large-scale producers, said Chinamo She said beef and dairy feed categories remained relatively subdued although registering modest growth. AgriMix registered growth in both volumes and profitably, driven by increase in demand as well as growth in its market share. Vetco performed well, on the back of competitively priced imported products which have proved popular with the markets. Chinamo said in the specialised division Victoria Foods registered an 11 % growth in volumes for the year under review. KobenHavn Logistics contributed positively to the groups savings on transport and logistics costs and overall speed to market. She said for Maitlands Zimbabwe there was little progress on the joint venture projects due to the continued unavailability of long-term funds for development. CFI retail division Farm and City endured intense competition from an influx of new players in the hardware sector.
