Business Reporter
DAIRIBORD Holdings grew its nine-month revenue by 26 percent to US$127,12 million, powered by strong beverage demand and new production investments, although a deliberate pullback from export markets and rising input costs cloud the outlook.
Sales volume for the nine months to September rose 23 percent to 119,85 million litres, the company said in its third-quarter (Q3) trading update. Beverages led the cumulative performance with 28 percent volume growth, followed by Foods at 26 percent.
Liquid Milks rose 10 percent. Beverages made up 67 percent of total volume, with Liquid Milks at 23 percent and Foods at 10 percent.
Export volumes fell 23 percent year-to-date, as the group “deliberately prioritised” strong domestic demand.
Dairibord said exports would become “a key focus area for foreign currency generation and risk diversification” as capacity improves.
Growth moderated in Q3 from the 26 percent volume increase recorded in the first half.
Quarterly sales volume still rose 18 percent year-on-year to 41,58 million litres, with growth across all product categories.
Revenue climbed 22 percent to US$44,65 million. By segment, Beverages grew 20 percent, helped by capital investments in the bottled Cascade and Pfuko Maheu lines. Foods rose 18 percent, driven by demand for yoghurt and ice cream. Liquid Milks gained 15 percent, supported by higher throughput at the Chipinge Steri plant, despite raw milk supply constraints. Beverages accounted for 66 percent of quarterly volume,
Liquid Milks 24 percent and Foods 10 percent.
The company said an extended cold spell in July slowed beverage offtake, while scheduled downtime on the Cascade bottling line also weighed on performance.
Raw milk, the group’s critical input, remained a bottleneck. Intake was unchanged year-on-year at 11,8 million litres for the quarter and 32,1 million litres for the nine months, although improving collections lifted Liquid Milks growth.
Dairibord described the quarter as one of “continued macroeconomic stability,” with inflation and the exchange rate holding steady, which helped pricing and trading.
Liquidity stayed tight, particularly in local currency, because of central bank policies.
A strong 2025/2026 farming season supported rural liquidity and food security.
Challenges persisted. Power supply improved overall, but faults and prolonged downtime hurt production sites. Middle East tensions kept fuel and imported input costs volatile and elevated. Competition also intensified, with new entrants in some categories and continued pressure from formal and informal local players and imports.
Management expects new investments to keep supporting volume growth into the fourth quarter, with raw milk intake from large commercial farmers anticipated to improve.
However, it warned that persistent Middle East tensions would push up costs, particularly petroleum-based packaging and freight for imported materials, squeezing margins.
To counter this, Dairibord is pursuing cost-efficiency measures, including utility self-sufficiency.
It also plans to commercialise its innovation pipeline from the fourth quarter through to the first quarter of 2027 to win market share.
