- Export sales improved by 118% ahead of 2021
- Exports accounted for 11% of total sales from 5% last year
- Revenue advanced by 39%
Harare- Largest milk processor listed on the Zimbabwe Stock Exchange (ZSE), Dairibord Zimbabwe Limited has posted a 118% sales uptick in sales volumes in regional markets during the third quarter ended 30 September 2022 ahead of last year's comperative period, while sales rose by 101% for the cumulative period. This resulted in export sales acounting for 11% of total sales from 5% in 2021 during the same period.
The boon in the export market comes at a time fiscal gaffers in Zimbabwe have passed aggressive monetary measures that affected the consumers’ purchasing behaviour thus, affecting the Group’s total sales by 7%.
“The Group’s focus on export market development was evident as regional markets responded positively in the quarter,” the Group said in a trading update.
Dairibord boasts a large footprint in export markets of Zambia, Botswana, Mozambique and South Africa while in Zimbabwe the Group has factories in Harare, Chitungwiza and Chipinge.
However, liquid milk sales volumes declined by 13% on account of raw milk supply challenges while raw milk utilised for the period at 19.8m litres was 3% lower than the prior period and accounted for 32.9% of the intake received by processors.
Dairibord remains the processor with the highest raw milk intake and widest milk intake base in the country.
Revenue for the quarter grew by 39% ahead of the prior year while year-to-date revenue was 39% above the same period last year.
Operating costs advanced by 38% on account of cost containment measures and improved operational efficiencies. Resultantly, the operating profit margin improved to 7% from 6% in the prior period.
Total borrowings were at ZW$2,213 billion, including foreign currency loans of US$ 2.1million. In US terms, the loans were at US$3.6 million at a Willing Buyer Willing Seller exchange rate of 647.
The business remains fairly liquid with a current ratio of 1.3 times.
“Management restructured borrowings to minimise the negative impact of the prevailing interest rates,” the Group said.
The Group reviewed its investment in the processing capacity to close the current supply gap and to take advantage of opportunities arising from national economic growth, driven by agriculture, mining and beneficiation projects in oil, gas, lithium, platinum, gold, chrome and steel.
However, inconsistent supply and high cost of utilities such as water and electricity remain a major challenge
“We target to achieve above average top-line growth, driven by an increased focus on domestic and export markets, improved product availability and an optimized route to market.”
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