- Local raw milk intake grew by 10%
- Strong brands and extensive market reach minimized sales volumes decline
- Export revenue improved by 100%
Harare – Dairibord Holdings’ sales volumes for the year ended 31 December 2019 (FY2019) plunged by despite a 10% growth in milk intake in the period under review.
Volumes sold dropped by 17% against an industry average decline of 23% for the manufacturing sector.
Liquid milk category achieved a marginal growth of 0.2% attributable to an increase in local raw milk intake which grew by 10% compared to national milk growth of 7.2%, benefitting from milk supply development initiatives targeted at small, medium and large scale milk producers.
Dairibord’s beverages category registered a 23% decline in sales volumes while the food category which accounts for 9% of the sales declined by 39%.
The Company however said, the drop in volumes sold was minimized, relative to the industry performance due to strong brands and extensive market reach which allowed the business to sustain capacity utilization of 44% against a manufacturing industry average of 36.4%.
Dairibord’s export revenue in the period under review grew by 100% from US$1.7 million to US$3.4 million as the company continued to drive exports in order to increase its regional foot print and to generate foreign currency to cover import requirements.
Growth in exports coupled with necessary product price adjustments resulted in the company registering a 60% growth in turnover to ZWL$ 1. 115 billion in the year under review.
The business also registered an improvement in operating profit from ZWL$55 million in 2018 to ZWL$ 90 million in 2019.
The improvement has been attributed to reduced fixed overheads, diligent procurement practices and an intensified drive to improve operational efficiencies.
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