ZIMBABWE’s largest dairy processor, Dairibord Holdings’ raw milk intake increased 12 percent during the half year ended June 30, 2018 on the back of recruitment of more farmers, herd growth and productivity improvement at farm level.
Volumes increased six percent to 41,002 million litres as demand was firm across all categories, although growth in volumes sold was constrained by supply challenges for both packaging and raw materials.
The group’s revenue was up 15 percent to $50,872 million compared to $44,354 million reported during the half year to June 30, 2017.
Export revenues went up 15 percent to $616 000. This was low compared to the company’s monthly foreign requirements.
“Export revenues grew by 15 percent to $616 000 contributing towards 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,” chairman, Josphat Sachikonye, said in a statement accompanying financial results.
During the period under review, the cost of materials increased by 21 percent. The average raw and packaging material prices went up 15 percent.
Sachikonye said the restructuring undertaken in 2017 enabled the business to effectively deal with overhead costs
despite increasing cost push pressures.Operating profit increased 239 percent to $720 000.
The group achieved a $270 000 profit from a $845 000 loss which included non-restructuring costs of $867 000 during the previous comparable period.
Dairibord Malawi reported a $293 000 loss during the period under review.
Net cash outflow from operations improved to $765 000 from prior period outflow of $1,253 million, on account of improved operating performance and collections.
The board did not declare an interim dividend.