- CFI Holdings posted a ZWG493.64 million profit in H1 2025, rebounding from a ZWG348.96 million loss
- Retail operations led by Farm & City Centre (FCC) contributed 85.04% of total turnover
- CFI recorded a ZWG672.42 million monetary gain from inflation-linked debt
Harare- CFI Holdings Limited has staged a strong comeback in the first half of 2025, swinging from a loss of ZWG348.96 million in the prior comparable period to a ZWG493.64 million profit, according to the company’s half-year financial results.
The turnaround was underpinned by a significant boost in revenue and sustained operational recovery across key business segments, particularly in its retail and Agrifoods units. Group revenue rose 30.4% to ZWG1.46 billion, up from ZWG1.12 billion recorded in the prior year.
However, this was not a profit rooted in core operations, as the group still recorded an operating loss of ZWG59 million. The net gain was largely driven by non operating items.
The increase in revenue was primarily attributed to currency revaluation effects following the official devaluation of the Zimbabwe Gold (ZWG) from USD1:13 to USD1:24 in late September 2024. This exchange rate adjustment played a pivotal role in reshaping the Group’s pricing models and balance sheet metrics.
Retail operations, led by Farm & City Centre (FCC), remained the backbone of the business, contributing 85.04% to total turnover up from 78.2% in the comparative period on the back of a 25% surge in sales volumes, supported by improved rainfall patterns and softer input prices.
This growth occurred despite persistent pressure from the informal sector, which continued to compress margins across most product lines by offering competing products at lower prices, often outside the official exchange rate system.
The Agrifoods division saw a 16% increase in sales volumes, benefiting from a recovery in feed demand tied to improved regional harvest expectations.
In farming operations, Glenara Estates maintained its summer cropping programme, cultivating maize and soya beans. While potato production was sustained, prices were lower due to market oversupply. Cattle breeding and pen fattening operations continued to support cash flow and integrate the supply chain.
The performance of Victoria Foods was mixed. The first quarter was impacted by rising maize prices due to the El Niño-induced drought, while the second quarter saw operational improvement. The mealie-meal segment remains sensitive to input cost volatility, but management expects a stronger second half driven by better harvests and agile procurement.
Meanwhile, the Group’s property development prospects gained clarity. A 2023 Supreme Court ruling reaffirmed Crest Breeders’ ownership of the Saturday Retreat Estate, and a constitutional challenge by land barons was dismissed in 2025. CFI is now advancing its strategy to leverage the land bank for affordable housing development in Harare South, in line with the government’s Vision 2030 objectives.
The Group also invested ZWG6.36 million in property, plant, and equipment, mainly at Glenara Estates and Victoria Foods, signalling a firm commitment to operational readiness and long-term asset growth.
Despite recording an unrealised exchange loss of ZWG51.2 million on foreign currency-denominated loans, the Group benefited from a significant ZWG672.42 million monetary gain, attributed to its high debt exposure in an inflationary environment.
This helped cushion currency-related headwinds and contributed to the ZWG568.35 million profit before tax, compared to a ZWG189.63 million loss in the same period last year.
In the poultry segment, Crest Breeders and Suncrest Chickens remained under care and maintenance.
However, the Group is actively pursuing joint venture opportunities aimed at revitalising operations particularly at the Beatrice farm under Hubbard Zimbabwe.
Looking ahead, the Group remains pessimistic about the trading environment, citing the dominance of the informal sector, which continues to undermine formal businesses despite renewed government efforts to clamp down on illegal operators. For example, in areas like Mbare, traders sell identical products to CFI’s at significantly lower prices, drawing consumers who often opt for convenience and affordability over formal quality assurances.
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