Dairibord Holdings reported its results for the half year ended June 30, 2017 showing reduced losses from what was recorded prior year comparative. The food and beverages company reported a loss of $845,313 for the period under review, down 55,45 percent from a loss of $1 897 500 reported prior year comparative.
In a statement accompanying the results, Chairman Leonard Tsumba said initiatives to align overheads costs to revenue are beginning to bear fruit.
Total overheads for the period, at $18,713 million were 8 percent below prior year period with labour costs declining by 14 percent. The results also includes restructuring costs of $0,866 million.
Tsumba said the restructuring of the Group has progressed in line with plan.
“Resultantly, EBITDA improved from $347 000, in 2016, to $2,935 million in 2017,” said Mr Tsumba.
The group recorded a 5,13 percent growth in revenue on the back of a 4 percent growth in volumes to 37,398 million litres with Liquid Milks, Foods and Beverages increasing by 2 percent, 10 percent and 3 percent respectively.
Average selling price per litre firmed to $1,15 from $1,14, a 1 percent increase on the first half of 2016 with Mr Tsumba saying the increase in the average selling price was on account of the change in product mix driven by growth in the Foods category which have a higher selling price per litre.
“In terms of key volume drivers, Pfuko grew 31 percent driven by new flavours that were launched in May 2016,” said Mr Tsumba adding that UHT milks grew by 24 percent on account of the cartonised lines.
Mr Tsumba said performance in the first quarter was constrained by bad weather while the second quarter was impacted by shortages of inputs, mainly raw milk and imported materials.
Going forward, Mr Tsumba said, the business focus will remain on consolidating the benefits of the initiatives started in the first half of the year.
The company will also focus on exports to improve foreign currency generation capacity.