- Dairibord’s profit after tax more than doubled to US$3.7 million, up from US$1 million the previous year
- The company experienced a 49% increase in raw milk intake, rising from 28.3 million litres to 42.1 million litre
- 83% of sales were in US dollars, providing resilience amid Zimbabwe’s liquidity challenges and currency crisis
Harare-Dairibord Holdings Limited, the leading milk processor listed on the Zimbabwe Stock Exchange (ZSE)’s profit after tax has more than doubled to US$3.7 million from US$1 million in the previous year.
This growth was propelled by a significant 49% increase in raw milk intake, which climbed from 28.3 million litres to 42.1 million litres, according to the company’s latest full year 2024 financial statements.
Of this expanded raw milk intake, 13% was directed toward exports, strengthening Dairibord’s foreign currency earnings.
“Exports grew by 13% year over year, contributing 8% to total sales revenue, up from 6% in the prior period,” the company’s chairperson, Josphat Sachikonye said .
This export growth and customers buying in the greenback contributed to the company’s resilience, with 83% of its sales denominated in US dollars despite Zimbabwe’s ongoing liquidity crunch and currency crisis.
As a result of these gains, total sales volumes rose from 107.7 million litres to 118.5 million litres, a 10% increase.
This uptick drove revenue to US$126.7 million, an 18% improvement from US$107.7 million in the comparative period.
In segment performance, liquid milk category led the charge, with sales volumes surging by 20% due to an increased raw milk supply, with notable market share gains across Chimombe, Steri and Lacto.
The food category also performed exceptionally, posting a 47% increase in sales volumes led by Yummy yoghurt and ice cream, while improved product availability bolstered Rabroy Tomato Sauce sales.
In contrast, the beverages category saw only a modest 1% growth in sales volumes impacted by subdued Pfuko maheu performance due to pricing challenges from the sugar tax and VAT adjustments.
The sugar tax was set at US$0.02 per gram of added sugar in January 2024, raising production costs for sweetened beverages.
Dairibord concluded the period with US$1.43 for every dollar of short-term debt.
In January 2024, the group classified 25 assets as held for disposal after meeting IFRS 5 criteria, initiating efforts to find buyers through three property agents.
Looking ahead, the company is focusing on optimizing operations, investing in capacity enhancement, and leveraging technology to improve products.
The company emphasizes regional expansion through export growth and a toll manufacturing model in South Africa to diversify revenue and increase foreign currency earnings.
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