eBusiness Weekly
Business Writer
CFI, a leading player in the country’s agricultural industry, demonstrated robust performance in the first quarter ending December 2023, according to the firm’s trading update.
The overview of business performance reflects a notable upsurge in sales volumes across key revenue drivers, underscored by strategic manoeuvrers amidst challenging operating conditions.
In the retail division, sales volumes experienced a significant 16 percent surge, reaching 21,453 tonnes compared to the prior year’s 18,446 tonnes.
This growth was primarily attributed to the normalisation of fertiliser prices following disruptions in the global supply chain triggered by the Russian-Ukrainian conflict.
Agrifoods recorded an impressive 18 percent increase in sales volumes, totalling 9,832 tonnes, facilitated by enhanced product availability through strategic supplier agreements.
Victoria Foods, however, encountered a mixed performance with wheat flour sales volumes remaining relatively stagnant, albeit showing a marginal 3 percent growth.
Stable wheat supplies were offset by intermittent power outages, limiting substantial growth potential.
Conversely, maize meal volumes experienced a commendable 10 percent growth, reaching 1,647 tonnes, buoyed by improved raw material supplies.
The Glenara Estates witnessed a remarkable doubling of potato harvest to 2,989 tonnes, attributed to enhanced seed supplies.
However, this was accompanied by an 8 percent decline in average selling prices due to market oversupply.
Despite this, the Estate’s cattle breeding and pen fattening activities, conducted jointly, continued with reasonable success, contributing to overall operational resilience.
From a financial standpoint, the group reported a staggering 544 percent increase in inflation -adjusted revenues for the quarter, reaching $159,8 billion compared to $24,8 billion in the same period last year.
This substantial growth underscores the efficacy of CFI’s strategies in navigating challenging market dynamics and capitalising on emerging opportunities.
CFI’s first-quarter performance reflects its adaptability and resilience in the face of adversities, showcasing effective operational management and strategic foresight. Looking ahead, the company is well-positioned to capitalise on its momentum, leveraging its robust foundation to drive sustained growth and value creation for its stakeholders.
