CFI Holdings (CFI) says the recent removal of some of its subsidiaries from judicial management has been a boost for its turnaround efforts.
The group voluntarily placed Crest Poultry and other subsidiaries under management in 2016 to protect its assets from creditors, and it has since regained control of all units after clearing its debts.
In a statement accompanying the group’s financial results for the year to September 30, 2022, chairperson Itai Pasi said regaining control of all the subsidiaries was a critical milestone in CFI’s recovery process.
“The board will be focused on strengthening its human capital base, improving business models to be adaptive to the changing environment and strengthening its operational systems to grow the businesses for shareholders’ benefit,” she said.
CFI’s other subsidiaries include Farm and City, Glenara Estates, Suncrest Park, Langford Estate, Agrifoods and Victoria Foods.
Pasi said the group was committed to playing its role in anchoring and underpinning food security in the country, with additional funds having been mobilised to recapitalise Victoria Foods, Agrifoods and the poultry division.
“The group looks forward to government assistance in resolving some legacy value chain constraints in the interest of supporting the resurgence of local agricultural production,” she said.
Pasi added that priority will also be given to the development of low-cost housing in Harare South in support of the government’s Vision 2030.
“The scourge of land barons will need resolution to make way for progressive and orderly infrastructure deployment and service delivery to the various settlements.”
She said the group has committed funding in the full year to September 30, 2022 to fortify its land development portfolios.
“The board is encouraged by the positive trajectory the economy is on, and hopes that the mild resurgence in inflationary pressures will be contained through further policy alignments, collaborative dialogue with industry and other stakeholders to restore business confidence and safeguard significant achievements attained since the introduction of the foreign currency auction system,” Pasi said.
The alternative market exchange rates premium over auction rates ranged between 15 percent and 95 percent during the period under review. And this, Pasi said, unfortunately imposed significant performance translation challenges on both historical and inflation adjusted accounts, given the conflict between IFRS and statutes. She said the distortions largely affect recorded revenues and profit for the period.