- Dairibord achieved an impressive 85% increase in US dollar sales during Q1 2024
- Exports volumes skyrocket by 97% due to a significant rise in raw milk intake, reaching 9.46 million litres
- Operating profit margins rose to 10% from 6% as operating costs decrease by 16%
Harare- Dairibord Limited, Zimbabwe's largest milk processor, experienced a significant surge in US dollar sales, with an 85% increase during the first quarter of 2024, which ended on March 31.
This growth came as export volumes saw a substantial 97% rise, resulting from a 38% boost in raw milk intake, reaching 9.46 million liters compared to the previous intake of 6.86 million liters.
Although exports accounted for only 9% of the total sales, there was a decline of 3% in local sales, causing a 1% decrease in overall revenue for the quarter.
Despite the increase in export sales share from 4% to 9% compared to the same period last year, it still represents a relatively small portion in terms of export sales hence likely, foreign currency earnings.
In terms of sales volumes, there was a marginal overall increase of 2%, driven by a 14% growth in liquid milk volumes and a 7% growth in the food category.
However, the beverages category experienced a decline of 3%.
Despite the decline in revenue, the operating profit margins improved significantly, increasing from 6% to 10% attributed to a 16% decrease in operating costs.
Dairibord Holdings Limited is a prominent manufacturer and marketer of food and beverage products. In addition to its core business, the company fully owns four property companies: Goldblum Investments (Private) Limited, Chatmoss Properties (Private) Limited, Quallinnex Properties (Private) Limited, and Slimline Investments (Private) Limited.
It was established in 1952 and became listed on the Zimbabwe Stock Exchange (ZSE) in January 1997.
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