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Business Reporter
Dairy processor Dairibord Holdings has warned that its profits are likely to be lower in the first half of the year compared to last year.
In a cautionary statement to shareholders, the company said results for the year ending 30 June would reflect operational challenges faced by the food processor as it embarked on a plant and staff rationalization exercise, which saw the closure of its factory in Bulawayo.It said the exercise resulted in a shortage of the company’s products on the market.
“The group results for the half year ending 30 June will reflect operational challenges encountered due to the plant and staff rationalization projects, escalating costs and liquidity challenges on the market.
“. . . as a result, profitability for the first half is expected to be lower than for the same period last year,” said the statement.
Early this year, the company closed it Bulawayo factory and relocated machinery to Harare, resulting in some job losses.
Operations in Bulawayo are now restricted to distribution.
Dairibord justified the closure of the factory saying it would ensure business viability while optimizing on economies of scale.
It also blamed reduced raw milk output from Matabeleland for the decision.
Online Reporter
derick.khumalo