Listed agro-industrial concern, CFI Holdings revenues in inflation adjusted terms for the third quarter to June grew by 21.8 percent to ZW$6.54 billion from ZW$5.34 billion in the prior year quarter although volumes took a slid due to late onset of rain season which frustrated demand for agricultural inputs.
In its Q3 trading update, the group said sales volumes were further affected by price increases in fertilizer stemming from the Ukraine crisis that dampened demand.
“Demand for fertilisers, which traditionally peak during the tobacco marketing season, was also constrained by the significant real price increases for the commodity. Cement sales for the quarter were also adversely affected by supply constraints,” said the group.
Of the Group’s inflation-adjusted turnover, Retail contributed 70.85% (2021– 87.37%) whilst Milling and Farming Operations accounted for 25.79% (2021–7.91%) and 3.36% (2021– 4.72%) respectively.
The group highlighted the impact of local and global inflation headwinds and steep exchange rate disparities in the local market as expected to depress disposable income and spending to year-end, save for mining and construction sectors of the economy, where improvements are expected.
“Notwithstanding the challenges, the Group remains optimistic of consolidating its fortunes amidst the evolving challenges in the operating environment. The Group will maintain its focus on sustaining business continuity in the obtaining environment.”
