CFI chairperson Itai Pasi

A key unit of CFI Holdings, Victoria Foods, has struck toll manufacturing deals as it opens a new page after experiencing turbulent times which saw it go under curatorship more than a year ago.

CFI chairperson Itai Pasi revealed this last week when she presented financial results for the half year to March 31, 2018 that showed a 34 percent growth in turnover to $33 million, after the listed group reported $24,6 million during the prior comparable period the previous year.
Pre-tax profits surged 109 percent to $3,2 million during the review period, up from $1,5 million the previous comparable period.
Pasi said another troubled unit, Agrifoods, kicked off production during a period when CFI defied uncertainties triggered by prolonged shareholder battles which reached a climax with the expulsion of some directors in November.
The group’s earnings before interest, depreciation and amortisation grew 80 percent to $3,7 million during the review period, from $2 million during the prior comparable period the previous year.
Pasi blamed the placing under curatorship of Victoria Foods on the previous management aligned to the Stalap shareholder group that was dramatically expelled during a stormy extraordinary general meeting on the day the military rolled out Operation Restore Order, which resulted in the ouster of President Robert Mugabe.
She said the CFI board and management hopes that Victoria Foods and poultry breeder, Crest will be out of judicial management in the near future.
“The board continues to work closely with the judicial manager and hopes to have Victoria Foods and Crest Poultry Group out of judicial management as soon as the group agrees a way forward with the creditors,” Pasi said in a commentary accompanying the financial results.
“Effective December 2017, Victoria Foods entered into a six months toll milling arrangement. Agrifoods resumed operations at the Harare plant, and these measures assisted in reducing operational losses during the period. 2018 is an important year for your company following the forcible removal in the first quarter, by our major shareholder group, of all the remaining conflicted Stalap/Zimre/NSSA (National Social Security Authority) appointed board,” she noted.
NSSA controlled significant shareholding in CFI until it hived off the stake and sold it to Stalap, an investment vehicle controlled by Hamish Rudland, the transport mogul. Rudland also controls Zimre.
In the aftermath of CFI’s own “coup”, Pasi said the new executive led by Shingi Chibhanguza was working under a specific mandate to “rebuild your company after the damage over several years by the previous senior management and boards that were responsible for bringing it to its knees”.
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