- Sales increased to ZWL42.1m, the highest in the last five years
- Revenue increased to ZWL4.2 billion from ZWL2.5 billion
- Operating profit scaled up by 21% to ZWL165.5 million
- Raw milk was 1% up from last year
Harare – Zimbabwe’s largest milk processor, Dairibord Holdings Limited posted a 54.5% growth in sales volumes for the first half year ended 30 June 2021, which the Group said is the highest first half volume performance in five years driven by higher demand across all product categories.
Consequently, revenue for the period increased to ZWL4.2 billion from ZWL2.5 billion achieved last year.
Of this, foreign currency revenues accounted for 15% up from 9% in the prior year which the Group says contributed significantly towards meeting the import bill.
Meanwhile, raw milk intake during the period increased by a marginal 1% to 13 186 litres when compared to the same period last year, while national milk production declined by 2% decline due to high stock feed prices.
Volumes in liquid milks, foods and beverages increased by 22%, 52% and 87% in their respective order compared to the same fiscal half last year.
“Despite the growth, demand still exceeds supply across the product portfolio, particularly in the Liquid Milks category which is constrained by raw milk supply challenges,” the Company’s chairperson, Josphat Sachikonye said in a statement accompanying the financials.
Operating profit saw a 21% increase to ZWL165.5 million during the period from ZWL137 million record last year while the cost of sales increased to ZWL3.2 billion from ZWL1.8 billion recorded during the prior year owing to increases of prices of materials and utilities driven by exchange rate movements and commodity price increases.
Net cash generated from operating activities scaled up to ZWL312.6 million during the half year from ZWL190.8 in the prior half of last year driven by improved operating performance and delays in settlement of foreign suppliers.
The Group said foreign currency liabilities at the end of the period were adequately covered by foreign currency denominated assets (debtors and cash) and expected disbursements from the foreign currency auction market.
Going forward, the company expects the second half to sustain the growth trajectory experienced in first half by taking advantage of the expected relaxation of COVID-19 induced lockdown and reduced restrictions on trading hours and projected GDP growth between 3.9% (World Bank), 6% (International Monetary Fund) and (7.8%) (Government of Zimbabwe), which will spur aggregate demand.
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