Dairibord revenue up 125%

Harare – Zimbabwe Stock Exchange listed entity, Dairibord Holdings Limited (DZL.zw) recorded an improved performance in the first five months ending 30 May 2019 with revenue scaling up 125 percent compared to same period last year despite having its operations negatively impacted by the existing macro-economic headwinds.

In a trading update to shareholders at the group’s annual general meeting held in the capital on Friday, group chief executive officer Anthony Mandiwanza said raw milk intake was ahead of prior year at 21 percent enabling import substitution.

“Share of national milk production remains high at 39 pecent,” Mandiwanza said.

The country currently produces about 70 million litres of raw milk per year against a national demand of 120 million litres, thus require to importing 50 million litres to cover the gap.

Volumes sold during the review period was 8 percent up ahead of prior year, but Mandiwanza cautioned that sustainability going forward is threatened by erratic supply of inputs, a trend which has been prevalent across the manufacturing sector due to acute shortages of foreign currency.

Foreign currency revenue was US$2.1 million up from US$0.5 million for 2018.

The group remains optimistic of its half year performance ending June 2019 targeting 20 percent growth in milk intake compared to same period last year, while sales volumes are projected to grow by 6 percent.

Likewise, foreign currency revenue is projected to grow to US$2.6 million up from US$0.6 million recorded in H1 2018.

Mr Mandiwanza said the group will focus on retaining and growing the milk supply base and also focusing on foreign currency generation.

Equity Axis News

Raynold Mhotseka

For contacts email rayjnr.mhotseka@gmail.com or raynoldm@equityaxis.net

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