ZIMBABWE – Dairibord Holdings, a leading food and dairy products maker, has announced a notable 14% increase in raw milk volumes for the quarter ending March 31, 2024.

The increase in milk intake, reaching 9.46 million litres compared to 6.86 million litres in the previous year’s corresponding period, reflected the success of the company’s initiatives to expand raw milk production.

According to Mr Maurice Karimupfumbi, company secretary of Dairibord Holdings, the growth was also a result of the group’s focused efforts on enhancing raw milk uptake, outpacing the national average with a 38% increase.

He noted that Dairibord continues to maintain its position as the leading processor in raw milk intake, ensuring a broad base of milk suppliers across the country.

“The group’s commitment to its suppliers and farmer support initiatives will ensure a sustainable milk supply for long-term growth,” he said.

Despite operational challenges, particularly the impact of the sugar surtax on costs and pricing, Dairibord demonstrated resilience by achieving a 2% increase in overall sales volumes.

Liquid milk volumes saw a notable 14% rise, while the foods category recorded a commendable 7% growth compared to the previous year. However, the beverages category experienced a slight downturn with a 3% decline.

Furthermore, Dairibord witnessed a significant shift towards US dollar transactions, constituting 85% of sales volumes, largely attributed to the dollarization of local transactions.

Export volumes surged by an impressive 97%, contributing to 9% of total sales, reflecting the company’s expanding international footprint.

Despite revenue for the quarter dipping by 1% due to lower prices per litre, successful cost containment measures led to a 16 % reduction in operating costs. This resulted in an improvement in operating profit margins from 6% to 10% compared to the same period last year.

Looking ahead, Dairibord has assured about its future prospects despite anticipated challenges, including weather-induced fluctuations in demand and geopolitical tensions.

According to the Management, the company is committed to capital investment projects aimed at enhancing operational efficiencies and expanding capacity to seize emerging opportunities.

Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, stressed the government’s stance on enforcing regulations against illegal foreign currency dealings and price distortions, underlining the importance of compliance with the law.

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