Nqobile Bhebhe Zimpapers Business Hub
DAIRIBORD Holdings’ revenue increased 26 percent to US$127,12 million in the nine months to September, buoyed by strong domestic demand and capital investments that have strengthened production capacity across its product portfolio.
Sales volumes grew 23 percent to 119,85 million litres during the period, reflecting sustained consumer demand for the group’s beverages, liquid milk and food products.
In the third quarter alone, revenue increased 22 percent to US$44,65 million, while sales volumes rose 18 percent year-on-year to 41,58 million litres, demonstrating resilience despite operational and seasonal challenges.
The company said growth was recorded across all product categories during the quarter.
“Total sales volume for the quarter grew 18% year-on-year to 41.58 million litres, with growth recorded across all product categories,” the group said.
Beverages remained the biggest growth driver, accounting for 67 percent of cumulative nine-month volumes after registering 28 percent growth.
Food volumes increased 26 percent, while liquid milk volumes rose 10 percent.
The performance reflects the contribution of recent investments in production infrastructure, particularly the bottled Cascade and Pfuko Maheu lines, as well as increased throughput from the Chipinge Steri plant.
However, the group continues to face raw milk supply constraints, with intake remaining unchanged year-on-year at 11,8 million litres in the third quarter and 32,1 million litres over the nine-month period.
Dairibord said third-quarter sales growth moderated from the 26 percent recorded in the first half, partly due to an extended cold spell in July that slowed beverage consumption and scheduled downtime on the bottled Cascade production line.
Export volumes declined 23 percent year-to-date as the group prioritised meeting strong domestic demand.
The company, however, expects exports to become an important source of foreign currency and market diversification as production capacity improves.
Looking ahead, management expects new investments and improved raw milk supplies from large-scale commercial farmers to support volume growth in the fourth quarter.
The group warned that geopolitical tensions in the Middle East could increase input costs, particularly petroleum-based packaging and freight for imported materials, putting pressure on margins.
“Persistent Middle East tensions will drive up input costs, particularly for petroleum-based packaging and freight for imported materials, exerting pressure on margins,” the group said.
To mitigate the pressures, management is pursuing cost-efficiency initiatives, including utility self-sufficiency, while new product commercialisation from the fourth quarter into the first quarter of 2027 is expected to support market share gains.
