Dairibord Zimbabwe Limited reports 18% revenue increase  for Q1 2025

ZIMBABWE – Dairibord Zimbabwe Limited (DZL), manufacturer and marketer of dairy products, has reported a revenue of US$31.3 million for the quarter, an 18% increase compared to the same period last year.

The company stated that the growth was driven by a combination of increased sales volume and a favourable product mix. Export volumes also saw a significant rise, increasing by 36% year-on-year. The company processed 9.95 million litres of milk.

Consolidated sales volumes grew by 14%. The share of sales volumes denominated in United States dollars increased from 85% to 95% year-on-year.

Food &beverage

The Beverages category led the growth with a 24% increase, driven by strong performance from Pfuko Maheu and Quickbrew tea.

Foods also contributed, growing by 19%, primarily due to increased sales of yoghurts and Rabroy tomato sauce.

Dairy

In contrast, liquid milk declined by 6% compared to the first quarter of 2024, due to production disruptions at the Steri Milk plant and the allocation of milk towards yoghurt production, which positively impacted the latter’s growth.

The company stated that the operating environment continued to present significant challenges during the quarter under review. Principal among these were constrained liquidity and cost-push pressures.

“The erratic supply of utilities further compounded these challenges, requiring the use of expensive alternatives for power and water, thereby contributing to the escalation in operating costs,” it stated.

Outlook

Dairibord said the growth momentum was expected to continue into the second quarter, supported by consistent product supply resulting from enhanced capacity across key brands.

“The group will continue to prioritise cost management and positive cash generation to strengthen financial performance,” it stated.

Q4 2024

In its Q4, 2024 report, the group had reported a remarkable 44% increase in its raw milk intake  , significantly outpacing the national average.

DZL Company Secretary Maurice Karimupfumbi revealed that the group’s raw milk intake reached 11.8 million litres during the period under review, a significant jump from 8.2 million litres in the same quarter the previous year.

This 44% growth rate stands in stark contrast to the national increase of 16.7% in raw milk intake among processors, with DZL now accounting for 36.7% of Zimbabwe’s total milk production.

The impressive growth in raw milk intake was mirrored in the company’s overall sales volumes, which saw a 29% year-on-year increase.

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