CFI Holdings inflation-adjusted revenue declined 1,9 percent to ZiG691 million in the third quarter ended June 30, 2026, as liquidity constraints and subdued consumer demand weighed on the group's performance.
Group's company secretary Mr Panganai Hare said the operating environment remained relatively stable during the quarter, supported by prudent fiscal and monetary policies, exchange rate stability and low inflation.
However, the group continued to face liquidity constraints, high borrowing costs and rising input and distribution costs, partly driven by geopolitical tensions in the Middle East.
The quarter also coincided with the start of the 2026 tobacco marketing season, which recorded record-high sales volumes but lower prices.
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Farm and City Centre (FCC) recorded a 21 percent decline in sales volumes compared with the same period last year, largely reflecting reduced disposable incomes among tobacco farmers and rising international fertiliser and fuel costs.
According to CFI, FCC was continuing to implement a product diversification strategy aimed at improving the resilience of the retail business.
Agrifoods however recorded a 27 percent increase in sales volumes during the quarter, driven by strong demand and improved utilisation of production capacity.
Victoria Foods reported an 86 percent increase in wheat flour sales volumes on the back of stronger demand, while maize meal volumes fell five percent due to maize supply constraints.
At Glenara Estates, soybean sales volumes doubled during the period as the business prioritised the crop, while maize sales declined 64 percent.
Potato yields fell 10,6 percent, mainly due to a disease outbreak that affected crop performance and overall productivity.
The estate's cattle breeding and pen-fattening operations continued under joint arrangements, with management reporting reasonable progress.
"The operating environment during the third quarter ended 30 June 2026 remained notably stable, supported by prudent fiscal and monetary policies, exchange rate stability, and low inflation.
"However, the operating environment continued to be negatively impacted by liquidity constraints, high borrowing costs, as well as increased input and distribution costs as a result of external geopolitical tensions in the Middle East. Overall, inflation-adjusted group revenue fell from ZiG704 million in the comparable period to ZiG691 million," said Mr Hare.
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Going forward, CFI indicated that it expects the economic environment to remain challenging through the 2026 financial year, with liquidity constraints and subdued aggregate demand likely to continue affecting business performance.
Mr Hare said the group would maintain its focus on cost containment measures while pursuing initiatives aimed at strengthening operational resilience and managing the challenging trading environment.
