Online Reporter
Business Reporter
DAIRIBORD Holdings, one of the major players in Zimbabwe’s dairy sector, has reported an 18 percent jump in quarterly revenue to US$31, 3 million for the three months ending 31 March 2025, overcoming “a strained operating environment marked by liquidity constraints and erratic utility supplies” . The listed firm credited its performance to robust demand for beverages and food products, alongside strategic shifts in production and distribution.
However, the group highlighted persistent economic hurdles, including liquidity shortages and cost-push inflation, which squeezed margins. Frequent power cuts and water supply disruptions further escalated operational costs, forcing reliance on pricier alternatives. Pricing distortions in formal retail channels also prompted the company to adapt its route-to-market strategies, prioritising agility in response to shifting consumer dynamics.
During the period under review,
the company processed 9, 95 million litres of raw milk during the quarter, an 8 percent increase from 9, 18 million litres in the same period last year. This accounted for 36 percent of Zimbabwe’s total milk output, which grew modestly by 3 percent nationally.
Consolidated sales volumes rose 14 percent, bolstered by expanded production capacity. The beverages category—led by Pfuko maheu and Quickbrew tea—surged 24 percent, contributing two-thirds of total sales. Foods followed with a 19 percent increase, driven by yoghurts and Rabroy tomato sauce. Liquid milk volumes, however, dipped 6 percent, attributed to temporary production halts at the Steri Milk plant and reallocation of milk to yoghurt manufacturing.
Export volumes climbed 36 percent year-on-year, reflecting stronger regional demand. Notably, 95 percent of sales were conducted in US dollars (up from 85 percent in 2024), insulating the firm from local currency volatility.
Revenue growth outpaced volume increases, aided by a favourable product mix. According to the trading update released by the group, emphasis is on high-margin items, such as yoghurts and ready-to-drink beverages, and this offset pressures in the liquid milk segment.
In the outlook, Dairibord expressed optimism for the second quarter, citing enhanced production capacity and improved product availability.
“We remain focused on cost containment and cash generation to sustain financial resilience,” stated Company Secretary Maurice Karimupfumbi.
The firm aims to capitalise on export opportunities while navigating domestic utility and liquidity challenges.
Commenting on the trading update, analyst Walter Mandeya of Trigrams Investments said while the decline in liquid milk sales underscores vulnerability to operational disruptions, Dairibord’s pivot towards value-added products like yoghurts highlights its adaptability.
“The shift to dollar-denominated sales further signals prudent financial management in Zimbabwe’s volatile economy.
” Investors will monitor whether the firm can maintain momentum amid persistent infrastructure and macroeconomic hurdles, ” said Mr Mandeya.
