Dairibord Holdings reports 18% sales volume in H1 2025

ZIMBABWE – Dairibord Holdings has reported 18% growth in overall sales volume driven by the resilience of the Zimbabwe Gold (ZWG) against the United States Dollar.

This stability was further supported by improved foreign currency availability, particularly through the Reserve Bank of Zimbabwe’s Willing Buyer, Willing Seller market, which facilitated the importation of critical raw materials.

National raw milk production increased by 3.9% year-on-year, rising from 55.1 million litres to 57.3 million litres (Ministry of Lands, Agriculture, Water and Rural Development, Dairy Services Unit).

Dairibord’s milk intake expanded by 3.7%, from 19.6 million to 20.3 million litres, accounting for 38% of national production. The Milk Supply Development Unit continued to recruit new producers, including small- and medium-scale farmers, to meet growing demand.

The Group achieved an 18% growth in overall sales volume. Performance by category was as follows: Foods, +18%, driven by strong sales of yoghurt and tomato sauce.

Beverages increased by 28%, with exceptional performance from Pfuko and Cascade, alongside a recovery in Tea due to improved availability, and liquid milks grew by 1%, reflecting modest growth.

Export volumes decreased slightly from 9% to 8% of total volume. Group revenue, nonetheless, increased by 18% to US$2.01 million (ZWG 1.82 billion), mainly on the back of volume growth.

Gross profit was US$492,500 (ZWG 446.4 million), marginally higher than the prior year. Operating Profit was US$86,300 (ZWG 78.08 million), down 28%, reflecting the absence of prior-year monetary gains.

Profit before tax was US$65,000 (ZWG 58.81 million), up 51%, buoyed by significantly lower finance costs as exchange losses on foreign loans declined.

Despite seasonal cash flow challenges during the winter period, the group achieved a substantial improvement in operating cash flows, reducing the deficit from US$72,400 (ZWG 65.56 million) in the prior period to just US$1,190 (ZWG 1.08 million).

Enhanced credit risk management and improved inventory turnover practices are expected to further strengthen cash flow generation in the second half.

In sustainability, the Chipinge solar plant initiative remains central to improving energy reliability and reducing the Group’s carbon footprint. This project is expected to yield significant operational and environmental benefits.

OUTLOOK

Although the first half reflected relative stability, the business continues to operate in a volatile and unpredictable environment.

The Group stated that it is intensifying risk management and hedging strategies to mitigate exposures, sustaining its focus on cost containment and efficiency as well as pursuing aggressive investment in replacement and refurbishment of critical equipment, aimed at boosting production capacity and positioning the Group for volume growth into 2026 and beyond.

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