Business Reporter
CFI Holdings praised Zimbabwe’s new Zimbabwe Gold (ZWG) currency for bringing exchange rate stability, creating a predictable operating environment despite a revenue dip in late 2025, as reported in their just ended financial year.
This stability, following the ZWG’s introduction and devaluation in late 2024, narrowed gaps between official and black market rates, helping the company manage costs better, though liquidity issues and informal competition remained challenges.
Challenges such as power supply disruptions, procurement constraints and competition from the informal sector continued to weigh on the overall performance.
As a result, revenues declined by 5,46 percent to ZiG2,72 billion from ZiG2,87 billion in the same period the prior year.
“This largely reflects on the increased competition mainly from the informal sector, which continued to erode volumes and pricing power across formal retail channels,” she said.
During the year under review, retail operations accounted for 83,53 percent of group turnover, up from 82,61 percent in the prior year.
Food manufacturing and down-packing operations contributed 12,99 percent of turnover, down from 15,68 percent, while farming operations chipped in with 2,82 percent from 1,11 percent in the same prior year period.
Group properties contributed 0,66 percent of turnover, slightly higher than the 0,60 percent recorded in 2024.
“Despite the pressure on revenues, the group returned to profitability, buoyed by foreign currency exchange movements,” said Ms Pasi.
In the period under review, CFI Holdings recognised unrealised exchange gains of ZiG441,2 million on its foreign currency-denominated loans, compared to an unrealised loss of ZiG877,3 million in the prior year.
“As a result, the group posted a profit before tax of ZiG448.26 million, reversing a loss before tax of ZiG875,04 million incurred in the previous financial year,” she noted.
