Online Reporter
Michael Tome
Dairibord Holdings is actively pursuing investment in its production capacity, including the refurbishment of critical equipment, to enhance output and drive volume growth into 2026.
This strategic move aims to optimise operations and strengthen its product offerings.
A key development is the commissioning of a new steri-milk line filling and processing line in Chipinge, set for the second half of 2025.
The new line will significantly enhance Dairibord’s production capacity, with a monthly output of four million litres.
This increase will enable the company to meet the growing demand for raw milk, positioning it for further expansion.
To achieve this, Dairibord is working closely with small-scale farmers in Manicaland to increase raw milk supply, a partnership that will allow the company to meet growing demand.
With a projected increase in raw milk, Dairibord aims to export steri-milk to markets like Mozambique, where the product is in high demand.
This expansion into new markets will further solidify Dairibord’s position as a leading player in the dairy industry, both locally and regionally.
“We are pursuing aggressive investment in the replacement and refurbishment of critical equipment, aimed at boosting production capacity and positioning the Group for volume growth into 2026 and beyond,” said Dairibord’s chairman, Mr Norbert Chiromo, in the half-year financials to June 2025.
Earlier this year, Dairibord Holdings Chief Executive, Ms Mercy Ndoro, indicated that the group was positive about growth prospects.
“We will be commissioning a new steri-milk filling and processing line in Chipinge sometime in September–October this year. It has the capacity to produce four million litres of milk every month, so it gives us the capacity to export milk into Mozambique. We are very excited about that development,” said Ms Ndoro.
This comes as the company has been focusing on regional expansion, having established a toll manufacturing model in South Africa to diversify revenue streams and increase foreign currency earnings. Operationally, the company’s product categories showed varied growth rates, with Foods leading with an 18 percent increase, driven by strong sales of yoghurt and tomato sauce.
Beverages followed with a 28 percent growth, fuelled by exceptional performance from Pfuko and Cascade, as well as a recovery in Tea sales due to improved availability, while Liquid Milks recorded a modest growth of one percent. As a result, Dairibord’s financial performance improved with revenue growing 18 percent to US$64,32 million, primarily driven by volume growth.
The company recorded a significant increase in US-denominated sales, which rose to 86 percent of total volume from 76 percent in the prior period.
Exports accounted for 8 percent of total volumes, from 9 percent recorded previously. Gross profit stood at US$15.78 million, marginally higher than the prior year.
However, operating profit declined by 28 percent to US$2,76 million, attributable to the absence of prior-year monetary gains, while profit before tax increased by 51 percent to US$2.08 million, driven by significantly lower finance costs.
