CFI Holdings recorded strong revenue growth for the six months to 31 March 2026, but a sharp decline in bottom line earnings prompted the board to withhold an interim dividend as the group continues to manage its debt position.
Inflation adjusted revenue rose 51.3 percent to ZWG2.30 billion from ZWG1.52 billion in the comparable period last year, driven largely by stronger demand for agricultural inputs following a favourable farming season. Operating profit before financing costs, depreciation and impairment improved to ZWG182.75 million from a loss of ZWG62.37 million a year earlier.
However, profit for the half year fell 93.6 percent to ZWG32.94 million from ZWG515.26 million, reflecting lower margins and the absence of large monetary gains recorded in the prior period.
Chairperson Valerie Pasi said the group’s performance was affected by market conditions despite stronger sales.
“Despite the positive revenue growth, Group margins declined due to heightened competition from the informal sector, which continued to exert downward pressure on pricing and profitability,” she said.
The company invested ZWG69.85 million during the period, mainly on retooling Victoria Foods, acquiring plant spares and reviving hatchery operations under Crest Poultry Group.
Retail subsidiary Farm & City Centre reported a 16 percent increase in sales volumes, supported by stronger demand for agricultural inputs, while Agrifoods increased volumes by 13 percent. Victoria Foods delivered a significant recovery, with wheat flour volumes rising 139 percent and maize meal volumes increasing 88 percent after improved availability of raw materials.
Looking ahead, Pasi said the group remains cautiously optimistic.
“The World Bank has projected Zimbabwe’s economy to grow by 5% by the end of 2026,” she said, adding that CFI would remain focused on procurement efficiencies, investment in milling operations and low cost housing development at Harare South.
No interim dividend declared.
“In view of the Group’s current debt position, your Board will not declare a dividend for the half year ended 31 March 2026,” Pasi said.