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Business Writer

DAIRIBORD Holdings Limited says through diversifying and expanding product portfolios and implementing affordable pricing models it weathered 2022 turbulent operating environment and recorded positive volume growth.

Riding on the momentum, the firm said it will continue to seek value-adding opportunities and leverage initiatives in raw milk production growth, diversified product portfolio, effective pricing models, and route-to-market strategies for sustained growth.

“Notwithstanding the turbulent operating environment, the group recorded positive volume growth compared to the prior year.

This success was made possible by maintaining focus on diversifying and expanding product portfolios, implementing affordable pricing models, and consistent review of the route-to-market strategies.

“All these efforts were further aided by ongoing investments in increased manufacturing capacity and capabilities,” said the company in its financial results for the year ending 31 December 2022.

During the period under review, raw milk utilised was 28,5 million litres, a four percent increase above 2021, representing 34 percent of the total intake by processors as the company remained the leading milk processor.

“The business aims to continuously grow volumes of high-quality raw milk through our Milk Supply Development Unit (MSDU) by providing support to the farmers in critical areas, which include feed formulation and nutrition, veterinary support, herd growth projects, input procurement facilities, as well as sustainability and alternative energy options,” said the company.

Meanwhile, sales volumes for the period grew by three percent ahead of the same period last year, with beverages and foods categories delivering growth of seven percent and 10 percent respectively and liquid milks declined by seven percent.

Contribution to total volume for liquid milks, beverages and foods was 28 percent, 62 percent and 10 percent respectively.

Domestic market sales volumes sold in US$ for the year were 50 percent (2021: 17 percent) and exports were six percent (2021: 5 percent) as the group’s regional footprint continues to grow.

The group recorded inflation adjusted revenue of ZWL63,38 billion during the financial year under review, a 40 percent increase on the comparative period.

“Moderate volume growth and price adjustments to protect margins were the main drivers of revenue growth,” said the company.

It noted that its operating profit grew 154 percent to ZWL6,03 billion compared to ZWL2,37 billion reported last year.

“The operating profit margin for the period was 10 percent up from 5,24 percent in the prior period.”
Going forward, the group said 2023 volume growth will be underpinned by recently completed capital investment projects, which include a third maheu (Pfuko) line, a drinking yoghurt (Yoggie) line and a third blow moulder for Steri milk bottles.

In addition, a new chilled water plant was installed at the Harare Rekayi Tangwena factory to optimise production capabilities.