Dairibord slips to $2mln H1 loss

Dairibord slips to $2mln H1 loss

HARARE, September 8 (The Source) – Dairibord has posted a loss of $1,9 million for the six months to June, 2016 from a profit of $317,000 in the comparable period last year.

Revenue slumped by 12 percent to $42,5 million due to pricing pressures.

“The decline was a result of consumer price adjustments made to address affordability and competitiveness against a static volume performance. The average consumer price realised, per litre of product sold, was 11 percent below prior year,” said chairman Leonard Tsumba in a statement on Thursday.

Sales volumes were flat at $37 million.

Dairibord invested $2,4 million in peanut butter processing equipment, cartonised UHT filling equipment and Pfuko capacity expansion.

The peanut butter processing line was commissioned in May and performance of the product has since improved, Tsumba said

The other two plants, which will be commissioned in September, are expected to increase production and boost revenue flow.