HARARE, May 18 (The Source) – Zimbabwe’s largest milk processor Dairibord reported a six percent fall in revenue for the first four months of the year despite higher sales as the company bids to maintain volumes.
Dairibord currently enjoys a 40 percent market share on the local market ahead of other dairy operators, Dendairy, Kefalos and Alpha Omega Dairy. Zimbabwe is also home to a host of small producers dotted around the major towns.
Group chief executive Anthony Mandiwanza told the company’s annual general meeting that the groups operating profit margin had remained flat at one percent in the review period.
“The business environment is more excruciating than we had anticipated. The worsening liquidity situation has had a negative impact on consumer spending and ability to settle obligations on time,” he said.
Dairibord wholly owns Lyons Zimbabwe, which packages and retails tea, among other food and beverage products. It is also the parent company of Dairibord Malawi and NFB Logistics.
Without giving figures, Mandiwanza said the group’s Malawi unit recorded a 7 percent increase in raw milk uptake while that of the entire group had grown 17 percent in the period.
Volumes sold increased by six percent while revenue declined similarly.
“As consumers stretch the dollar you will see that average consumer prices per litre declined and the selling price is also down percent 11. That is why volume is up but revenue is down 6 percent,” he said.
Going forward, Mandiwanza said the group would aim to increase sales and manage operational costs.
The group intends to double the capacity of its Maheu plant in the second half of the year.