Dairibord Holdings Limited reports revenue of US$82.6M in H1 2026

ZIMBABWE – Dairibord has reported that revenue increased by 28% to US$82.56 million, from US$64.32 million in the comparative period, driven primarily by the strong volume recovery and supported by the more stable pricing and currency environment.

Consolidated sales volume grew by 26% to 78.3 million litres, from 62 million litres in the comparative period last year, while raw milk utilisation was broadly flat at 20.4 million litres.

Revenue from the Group’s South Africa segment grew by 38% to US$0.72 million, from US$0.52 million, continuing to build scale in the Group’s regional operations.

Cost of Sales increased by 25% to US$60.87 million, while Gross Profit increased by 37% to US$21.69 million, from US$15.78 million, reflecting the benefit of higher volumes together with disciplined management of raw and packaging material costs.

Operating expenses grew more slowly than revenue, with Selling and Distribution expenses up 16% to US$10.14 million and Administration expenses up 35% to US$6.03 million.

Consequently, Operating Profit more than doubled to US$5.54 million, from US$2.76 million in the comparative period.

Finance costs increased to US$1.15 million, from US$0.72 million, reflecting the higher level of borrowings drawn to fund capital expenditure and working capital requirements.

Profit Before Tax more than doubled to US$4.40 million, from US$2.08 million, while Profit for the Period increased by 169% to US$3.25 million, from US$1.21 million in the prior period.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 78% to US$7.64 million, from US$4.29 million. Basic earnings per share increased to 0.91 US cents, from 0.34 US cents.

Performance was strong across all product portfolios. Beverages continue to be the Group’s largest volume contributor, accounting for 67% of total volume.

The portfolio delivered a 33% year-on-year increase to 52.8m litres from 39.6m litres in the prior year. All Beverage lines recorded growth, with Quench cordial achieving an exceptional 82% increase compared to prior year.

Strategic capital investment in capacity expansion at the Simon Mazorodze factory successfully unlocked volume growth on bottled Cascade, driving volume up by 68%.

Fun n Fresh and Pfuko maheu grew by 56% and 43% respectively, the latter also benefiting from capacity expansion at the Chitungwiza plant, which enhanced production capability and product availability.

Foods delivered the Group’s second- highest growth, with sales volume rising 30% to 7.3m litres. The portfolio’s positive performance was underpinned by firm consumer demand for Bulk Ice Cream, Salad Cream, Yogie Drinking Yoghurt and Yummy Yoghurt, which achieved year-on-year growth of 80%, 72%, 42% and 25%, respectively.

Liquid Milks grew moderately, up 8% to 18.2 million litres. Category expansion was constrained by raw milk supply rather than market demand. However, Steri Milk achieved 72% year-on-year volume growth, capitalizing on the added capacity from the newly commissioned Chipinge facility in December.

Exports declined by 30% as product was strategically redirected to meet strong domestic demand across all portfolios, ensuring sustained market availability and supporting local market growth.

OUTLOOK

The improved stability in inflation and the exchange rate experienced during the first half of 2026 is expected to continue supporting trading conditions into the second half of the year.

However, the Group remains alert to the risks and cost-push pressures presented by the geopolitical headwinds in the Middle East.

The Group will continue to prioritise capacity expansion, cost discipline and a stable, competitively priced local raw milk supply through its out-grower support programs.

Regional expansion remains a strategic focus, with continued growth in the South Africa segment and the toll manufacturing model supporting efforts to diversify the Group’s revenue streams and increase foreign currency earnings.

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