BY BUSINESS REPORTER
CFI holdings Limited reported a profit-after tax of ZWL$7,2 million in the half-year to March 31, 2019, up from ZWL$2,1 million posted over the same period last year, driven by growth in earnings from its retail division.
“Group turnover for the half-year increased by 43,2% from ZWL$33 million in the previous period to ZWL$47,2 million, with the retail operators contributing 96%(2018 H1-95%) and farming operations contributing 4% (2018 H1-5%) of the total turnover,” group chairperson Itai Pasi said yesterday in a statement accompanying financial results.
Group earnings before interest, taxes, depreciation and amortisation for the period improved from ZWL$3,7 million in the prior period to ZWL$11,1 million.
The improvement was a result of the increased volumes and enhanced cost containment efforts.
During the period, the group repaid short term borrowings amounting to ZWL$1,7 million and advanced ZWL$2,2 million to Agrifoods at the end of prior year.
For the first time since 2009, the group registered net finance income of ZWL$82 000 for the period under review, against net finance costs of ZWL$221 000 incurred in the comparative period.
Pasi said entities under judicial management (Crest Poultry Group, Agrifoods and Manicaland Farmers Co-op (Pvt) Ltd) traded profitably during the period and a scheme of arrangement
had been concluded for Crest Poultry Group, which is on course to exit judicial management, before financial year ends.
The group said it has commenced settling debts owed by Victoria Foods.
“Entities under judicial management posted a profit before corporate tax of ZWL$1,1 million against losses of ZWL$900 000 incurred in prior year. The improvement was underpinned by the recovery of Agrifoods’ trading performance, attributable to the RTGS$2,2 million loan funding availed to the business,” Pasi said.
The group’s total assets grew to ZWL$83,4 million from ZWL$73,1 million.
Total current liabilities was ZWL$18,5 million from ZWL$14,9 million prior period.
The group’s poultry division remained under care and maintenance during the period, with joint ventures leveraging the group’s poultry infrastructure and brands being considered.
“Suncrest Park continued to recover land compensation dues in respect of stand purchases. On Langford Estates, legal proceedings to reverse the illegal Langford Estates transaction have commenced and updates will be provided in due course,” the company said about its property unit.