eBusiness Weekly
Enacy Mapakame
HARARE – Dairibord Zimbabwe Holdings overturned a loss position with 131 percent in net profit to $269 844 during the half year to June 30, 2018 from a loss of $846 588 on volumes growth and restructuring.
Its regional subsidiary, Dairibord Malawi posted a loss for the period of $293 000 on depressed performance.
At $50,8 million, revenue for the period was 15 percent above same period last year. The group achieved a 6 percent growth in volume to 41 million litres on increase in demand.
Volumes of high value lines like condiments, ice creams and cartonised fun and fresh recorded significant growth over prior year.
“Demand was firm across all categories, however, growth in volumes sold was constrained by supply challenges for both packaging and raw materials for the majority of the group’s product lines,” said chairman, Josphat Sachikonye in a statement accompanying the group’s financial statement.
Export revenues grew 15 percent to $616 000 which helped the company meet its foreign currency requirements although this still remained low compared to its monthly foreign currency requirements.
Management however anticipates its export initiatives to be fruitful and help contribute to the company’s earnings.
During the period under review, raw milk intake was 12 percent above prior year levels.
“The improved intake benefitted from enhanced milk supply strategy which is anchored on recruitment of more farmers, herd growth and productivity improvement at farm level,” said Mr Sachikonye.
The growth in milk intake will benefit market share for the liquid milks category and reduce dependence on imported milk powders, which are expensive and difficult to secure given the foreign currency challenges.
Althoughy foreign currency remains a challenge for businesses, a sustained economic growth is anticipated which will also benefit the dairy industry.
Dairibord did not declare a dividend.
