Agro-Industrial group CFI Holdings Limited is pursuing the removal of Victoria Foods from judicial management as the group seeks to bolster its contribution to national food security.
Victoria Foods, a milling subsidiary of CFI together with its sister company, Agrifoods, a stock feeds manufacturer, were placed under provisional judicial management in 2016 before being subsequently placed under judicial management to allow for debt restructuring, re-organisation and recapitalisation.
The two business units require US$12 million for recapitalisation. In its 2020 annual report, CFI Holdings said the return of Victoria Foods from judicial was a significant milestone in implementing the group’s turnaround efforts.
“The group continues to pursue the exit of Victoria Foods from judicial management and will give an update in due course,” it said.
“The return of this company to the group’s control after more than four years under judicial management will mark an important milestone in the group’s turnaround efforts and the group’s resurgence as a significant pillar in underpinning food security in the economy,” said the Agro-industrial concern.
During the 2021 financial year, the CFI board has committed to further recapitalisation of all the group’s business units.
The firm’s other subsidiaries include Glenara Estates and Crest Poultry Group (CPG), which consists of Habbard Zimbabwe, Crest Breeders, and Suncrest Chickens that are all under care and maintenance.
“The management of a consistent raw material supply line for Agrifoods and Victoria Foods will remain an on-going priority given the current liquidity situation in the economy and long delivery lead times for imported products,” said CFI.
During the financial year under review, CFI’s operating profit inclusive of monetary gain increased by 10,8 percent to ZWL$701,7 million, up from ZWL$633,1 million earned in the prior period.
The improvement is attributable to cost containment efforts sustained during the period, increased procurement efficiencies and the positive contribution from CPG’s performance. The Chronicle