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HARARE Bureau
Dairibord Holdings revenue for the four months to April 2016 declined 6 percent due to lower average selling prices despite volumes increasing 6 percent on prior year same period comparable.
Chief Executive Officer Anthony Mandiwanza in a trading update at the company’s annual general meeting yesterday said volume growth at 6 percent was in line with projections while revenue was largely impacted by average selling prices which dropped from $1.24 to $1.11.
He said that in terms of volume, Maheu was growing in impressive fashion, and Mr Mandiwanza applauded the government for addressing unnecessary imports of the product into the country.
“Indeed, it is an opportunity for us to grow in that space. We’re in the process of commissioning additional capacity, which will double what we had and the benefit will be felt as we roll into the second half,” he said.
He said new capacity for cartonised milk, Chimombe, has been created and the group has shifted from toll manufacturing, which was being done in South Africa, while Dairibord struggled to meet demand for the product.
“We’re internalising that production, which will contribute towards volume increase, because we know, currently, we were under supplying the market,” he added. “The plant will be commissioned toward the second half.”
The milk processor has also commissioned a new processing line at Lyons for peanut butter production, which was constrained by limited capacity and the plant has been running for the past two weeks, Mr Mandiwanza said. The will drive volume and revenue growth.
Addition, the group has been in the market introducing value brands and line extensions to leverage business growth.
Mr Mandiwanza said raw milk intake for the group was 17 percent up in the period January to April 2016 while for Dairibord Zimbabwe Limited, it was 19 percent higher and for Dairibord Malawi milk intake was 7 percent up. National intake went up 18 percent in the period.
Online Reporter