Business Reporter
Dairibord Holdings has commissioned a US$500,000 ice cream stick production line at its Rekayi Tangwena facility, doubling capacity for its Cool Summer Stars range as the group intensifies a capital expenditure drive aimed at defending market share and lifting margins.
The new line, which produces the Nutty Squirrel, Skippy Choc, SuperSplit, Bigga Bear, Monsta Mouse, Plus20 and Green Giant variants, addresses rising demand for accessible single-serve frozen treats, particularly through vendor networks and the informal retail trade.
The investment builds on US$11,8 million in capital expenditure during 2025, which the group said drove a 23 percent year-on-year increase in cumulative sales volumes to 119.85 million litres for the nine months ended 30 September 2026. Revenue for the period grew 26 percent to US$127.12 million.
Foods, the segment housing ice cream and yoghurt, recorded 26 percent volume growth over the nine months, with the group’s latest trading update attributing third-quarter performance to robust consumer demand for the two lines. Ice cream sits within Dairibord’s highest-margin category, meaning expanded production supports both volume growth and group margin enhancement.
The commissioning comes as third-quarter sales volume growth moderated to 18 percent, from 26 percent in the first half, to 41.58 million litres, with quarterly revenue up 22 percent to US$44.65 million. Dairibord attributed the slowdown to an extended cold spell in July, which dampened beverage offtake, and scheduled downtime on the bottled Cascade production line.
Group Chief Executive Mercy Ndoro said the investment underscored confidence in the group’s brand equity and domestic consumer demand.
“This commissioning is a clear statement of intent. Consumer demand for our ice cream continues to grow, and we are investing decisively to ensure consistent product availability across all retail channels,” she said.
Ms Ndoro added that the group would maintain disciplined capital allocation, prioritising high-return investments that convert production capacity directly into volume and margin growth.
“Capacity expansion remains central to our strategy. We are building the operational scale required to meet demand, strengthen our competitive position, and deliver sustainable value for our shareholders.”
The expansion is expected to support volumes into the fourth quarter, alongside anticipated improvements in raw milk intake from large commercial farmers. Raw milk supply remains a constraint, though intake held at 11.8 million litres in the third quarter and 32.1 million litres over the nine months.
Dairibord cautioned that persistent Middle East tensions would drive up input costs, particularly for petroleum-based packaging and freight on imported materials, exerting pressure on margins. Management is pursuing cost-efficiency initiatives, including utility self-sufficiency, and plans to commercialise its innovation pipeline from the fourth quarter through to the first quarter of 2027.
Export volumes fell 23 per cent year-to-date as the group deliberately prioritised domestic demand. Dairibord said exports would be a key focus area for foreign currency generation and risk diversification as capacity improves.
