Dairibord profitability improves despite drop in revenue

Zimbabwe’s largest milk processor, Dairibord yesterday said revenue for the first four months to April 30 was two percent below comparable period last year, due to incessant rains and system migration challenges faced during the group consolidation process.

However, profit margins improved in the period as operating costs fell below the previous year.

The group consolidated the operations of Dairibord Zimbabwe, Lyons and NFB Logistics in a bid to reduce costs and improve operational efficiency, a move which chief executive, Anthony Mandiwanza said is now bearing fruits.

“Overall performance is better than last year, a manifestation of the benefits of the turnaround strategy deployed by the group effective January 2017,” Mandiwanza told shareholders at the company’s annual general meeting.

Rationalisation costs incurred to date amounted to $866 000 against a budget of $1 million.

Mandiwanza said the new UHT carton plant has been fully commissioned, stabilising the supply of its flagship Chimombe milk brand.

The import restrictions imposed last year were also positively impacting the foods category, he added.

Nevertheless, Mandiwanza said raw milk intake declined in the period due to incessant rains in the first two months of the year which hit yields per cow.

The half year results would be ahead of last year, benefitting from consistent product supply, he said. – The Source

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