Dairibord records 48% jump in sales
MILK processor Dairibord Zimbabwe has recorded a 48% jump in sales volumes, the highest in five years, driven by a significant growth in the beverages segment although it failed to meet consumer demand last year.
The sales at 94,2 million litres were 48% ahead of prior year with liquid milk growing by 10%, foods by 34% while beverages recorded a significant 84% due to growth in volumes of its Pfuko and Cascade products.
In a statement accompanying the company’s financial results for the period ending December 31, 2021, Dairibord said 20% of the sales were in foreign currency, an increase of 16% from 2020.
“Despite the strong volume growth, the business was not able to meet strong consumer demand due to production capacityconstraints such as COVID-19 supply side disruptions. Revenue for the year grew by 55% driven by 48% growth in volumes and moderate upward price adjustments of 5% which was well below the inflation rate.
The total foreign currency revenue increased by 120% over 2020 as a result of focus on foreign currency-generating initiatives.
“The foreign currency revenue generated, coupled with proceeds from the auction market contributed towards meeting the company’s import bill” the company said.
Operating profit increased to $791 billion, a growth of 1 009% with the group achieving an after tax profit of $61 million which was an increase of 149% above prior year.
In the outlook, the company said it was localising supply chains of key inputs through a sustained focus on smart partnerships with key suppliers, cost reduction, cost containment and enhanced working capital management to defend margins and preserve value.
“Given the current domestic inflation trend, foreign currency challenges, global inflation and anticipated supply disruptions the business will focus on sustenance to preserve value with moderate growth expectation.”
The key focus areas, the milk processor pointed out, will be strategies that optimise the dual currency system, channel and product mix and export markets to ensure more than enough foreign currency is available for input requirements.
Dairibord said it would take advantage of market opportunities by leveraging on the US$2,8 million investment in property, plant and equipment made in 2021 to increase availability of foods and beverages.
The milk processor declared a dividend of $0,41 per share for the period spurred by improved performance of the business.
“The dividend will be paid to shareholders in the share register of the company at close of business on the 22nd of April 2022. The payment of the dividend will take place on or about the 13th of May 2022,” the company revealed-newsday
