Purple patch for Dairibord Holdings, as revenue jumps 40pc

Elton Manguwo

DAIRIBORD Holdings has recorded a 40 percent growth with revenue jumping to $17, 12 billion for the half year ended June 30, 2022 from $11, 54 billion during the corresponding period last year.

The Zimbabwe stock exchange listed milk processing giant’s drive to increase its share of the market has remained on course as demonstrated by the positive growth trends.

Group chairman Mr Josphat Sachikonye said the group managed to boost its domestic market demand through a robust marketing plan supported by various product innovations.

“The growth in revenue was driven by growth in sales volumes and moderate price adjustments to preserve margins,” revealed Mr Sachikonye in a trading statement.

Mr Sachikonye added that demand for their products remained firm across all categories with overall sales volumes for the period growing by 11 percent ahead of the same period last year. For all of the group’s sales, 40 percent were in foreign currency – 32 percent of which was from local markets while the outstanding 8 percent came from exports.

Despite an increase in operational costs on account of imported inflation and price volatility arising from exchange rate movements, the group continues to make investments, further explained Mr Sachikonye.

The company invested $1, 2 billion in capital expenditure to fund projects to increase productivity and continues to subscribe to the Government’s thrust of developing local companies to be fully capacitated to serve both the local and external markets while earning foreign currency through exports.

The chairman said the group had elevated various initiatives amid stock feed price rises to ensure aggressive milk supplies with the long term benefits meant to show through competitive local milk prices, import substitution of milk powders and the creation of opportunities for export markets.

According to the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development’s Department of Dairy Services, the country’s milk half year intake by processor rose by 17 percent to 38 million litres from 33, 42 during the same comparative period last year with the group managing to utilise 12, 29 million litres representing 33 percent difference thereby retaining its position as the highest milk intake processor.

Following the Government’s efforts to revamp the dairy sub-sector, the industry has since projected a growth of milk volumes of 87 million litres by year end from the 79 million litres recorded last year.

Ultimately, the country projects the positive growth trajectory to see volumes of milk breaching 130 million litres by 2025.