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quarter of the year, turning over US$20,5 million.
The company’s capacity utilisation now stands at between 35 and 50 percent, driven by improving raw milk intake.
DHL chief executive Mr Anthony Mandiwanza told shareholders at the company’s annual general meeting in Harare yesterday that growth was achieved on the back of a stable operating environment and steady inflation.
He said during the period under review, targets were slightly in line with the group’s budget, with raw milk intake growing by 33 percent to register 6,1 million litres.
Raw milk production is expected to grow by 15 percent this year and Dairibord is positioning itself to tap into the projected growth.
“The first quarter of the economy was stable with year-on-year rate of inflation finishing the period under review at 2,7 percent. But there were pressures of wage adjustment across the economy that had an impact on inputs costs,” said Mr Mandiwanza.
He said the opportunity of increasing prices was limited, despite increases in the price of their major raw materials, including sugar, concentrates and groundnuts.
During the period, volumes for liquid milk grew 56 percent, compared with the same period last year with revenue growing by 46 percent.
Significant growth was also recorded in foods, growing 52 percent in volumes and 51 percent in turnover. Beverages recorded marginal increases of 11 percent and 12 percent in volumes and revenue respectively.
Mr Mandiwanza attributed the depressed growth rates in beverages to the delays in commissioning of the juice plant at Lyons and DZL.
He added that this had to do with the constrained supply chain during the period under review.
Ice-cream and juice vendors were banned from operating in the central business district during the period.
Mr Mandiwanza said the company was expected to conclude negotiations today in a move that is likely to see the products being sold in the city centre.
Going forward, Mr Mandiwanza said business was expected to improve during the second half of the year together with its regional operations.
He said to grow the liquid milk base in Zimbabwe, stakeholders should continue lobbying the Government to play a leading role in the recovery of the national dairy herd.
DHL subsidiaries include Dairibord Zimbabwe Limited, Lyons, NFB Logistics and Dairibord Malawi.
Announcing group results for the financial year ended December 31 2010, DHL said capital expenditure for 2011 was projected at US$7 million to capacitate product lines to contain costs and enhance revenue generation.
Online Reporter