Dairiboard Revenue 15% Up

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Zimbabwe Stock Exchange listed, Dairiboard Holdings Limited has achieved a revenue of $50.872 million, for the six months ended June 2018, representing a 15% increase from the same period last year.

The giant dairy producer has also seen a six percent increase in sales volumes to 41.002 million litres.

According to the group chairman Josphat Sachikonye, Export revenues grew by 15% to $0.616 million contributing towards meeting the Group’s foreign currency requirements.

“Volumes of high value lines like condiments, ice creams and cartonised Fun and Fresh recorded significant growth over prior period. Demand was firm across all categories, however, growth in volumes sold was constrained by supply challenges for both packaging and raw materials for the majority of the Group’s product lines.

“Export revenues grew by 15% to $0.616 million contributing towards meeting the Group’s foreign currency requirements. This remains low compared to monthly foreign currency requirements. Initiatives put in place to grow exports are anticipated to increase the contribution of exports to Group revenues going forward,”he said.

He added that the  business achieved an operating profit of 239% improvement over last year.

“The business achieved an operating profit of $0.720 million, a 239% improvement over last year. Profit for the period improved to $0.270 million from a loss of $0.845 million, which included non-recurring restructuring costs of $0.867 million.

“Group raw milk intake for the first six months of the year was 12% up on same period in 2017. The improved intake benefited from the enhanced milk supply strategy which is anchored on recruitment of more farmers, herd growth and productivity improvement at farm level.

“The growth in milk intake will benefit market share for the liquid milks category and reduce dependence on imported milk powders, which are expensive and difficult to secure given the prevailing foreign currency constraints,” said Sachikonye.

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