CFI Holdings delivered a strong rebound in sales for the half year to March 31, 2026, but the numbers also show how hard Zimbabwe's formal retailers are being squeezed by informal competition.
The agri-industrial group reported inflation-adjusted revenue of ZWG2.30 billion, up 51.3% from ZWG1.52 billion in the comparable period, according to its HY2026 interim report published through AfricanFinancials. The growth was driven mainly by stronger demand for agricultural inputs after a better farming season.
That top-line growth did not fully reach the bottom line. Profit for the half year fell 93.6% to ZWG32.94 million, while basic profit per share dropped 94%. The company also reported a ZWG51.17 million monetary loss under hyperinflation accounting.
Separate coverage by Bulls n Bears, citing CFI chairperson Itai Pasi, said Farm & City Centre recorded a 16% increase in key product-line sales volumes, while Agrifoods sales volumes rose 13%. Victoria Foods was the stand-out recovery, with wheat flour volumes up 139% and maize meal volumes up 88% from the prior year.
The pressure point is pricing. CFI's own reporting and Financial Gazette coverage both point to heightened informal-sector competition as a drag on margins. Informal traders can often operate with lower compliance, tax, banking and labour costs, leaving formal businesses with less room to price profitably.
That matters beyond one listed company. If formal businesses grow volumes but cannot protect margins, the tax base, employment base and creditworthiness of the formal economy all weaken. It is the same formalisation problem ZimRate has tracked in stories on counterfeit goods enforcement and the pressure facing businesses that comply with official rules while competing against cheaper informal supply chains.
CFI said it is preserving capital, with no interim dividend declared, while continuing operational investments including Victoria Foods retooling and hatchery resuscitation. The company says product diversification and strategic procurement remain part of the plan for sustaining profitability beyond peak agricultural demand.
For consumers, informal channels can look cheaper in the short term. For formal operators, the cost is thinner margins and weaker cash generation even when sales volumes improve. That is the policy tradeoff: Zimbabwe needs affordable goods, but it also needs formal firms strong enough to invest, borrow, employ and pay tax.
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