AGRO-BASED and diversified manufacturing concern CFI Holdings Limited loss soared to $6,5 million in the full-year ended September 30 2013 attributed to low capacity utilisation and heavy financing costs in the period.
According to a financial statement released yesterday, the company loss increased to $6,5 million up from $4 million recorded in the same period in the previous year owing to increased financial costs against low performance across all divisions.
“Financing costs for the year increased to $4 million from $3,4 million despite registering a marginal increase of $0,1 million in borrowings to close the year on $16,4 million,” the company said in a statement accompanying financial results.
The group recorded operating loss from continuing operations before depreciation of $2,1 million against a $1,2 million recorded in the prior year.
The loss was also attributed to a 6% decline in turnover to $87,3 million from $92,6 million as the company continues in turbulence.
Revenue declined by 20% and 16% respectively for the poultry and specialised divisions respectively due to inadequate working capital. However, the growing demand for hardware and agro inputs saw the retail division recording a 20% increase in revenue during the period.
Of the total turnover, the poultry division contributed 45%, specialised division 11% while the retail division contributed 44%.
In the company’s poultry division, Agrifoods recorded an 8% decline in volumes to 69 105 tonnes from 75 431 tonnes recorded in the prior year attributed to intermittent availability of maize and constraints in working capital.
However, the company said the business has a potential for growth going forward owing to increased viability of small-to-medium poultry projects following the imposition of duty on imported chicken as well as overall growth in ruminant feeds for national cattle herd.
The company’s subsidiary Agrimix volumes declined by 13% although the business managed to maintain margins and profitability during the period.
On the retail business, pursuant to the group’s strategy to leverage on systems, Vecto was merged into Farm and City.
As a result, turnover grew by 18% in the division spurred by the increased demand for agro inputs and improved supply support to the business.