Food and beverages manufacturer, Dairibord Holdings, has reported a strong start to the year after recording a solid jump in volumes and improved product availability across core brands.
The performance offers early signs that its capital expansion drive may finally be paying off.
The Zimbabwe Stock Exchange-listed company said sales volumes for the first quarter ended March 31, 2026, rose 26 percent compared with the same period last year, driven by double-digit growth across its beverages, milk and foods divisions.
This comes only months after the group completed a major capital expenditure programme that included a new Steri milk processing plant, upgrades to its Pfuko maheu line and a new Cascade beverages bottling facility.
In its latest trading update, Zimbabwe’s biggest dairy processor said, “The improved output reflected the group’s strategic focus on capacity expansion and optimisation of its route-to-market initiatives.”
Revenue for the quarter climbed to US$39,4 million, also up 26 percent year-on-year, suggesting the company’s investment-heavy expansion strategy is beginning to translate into stronger commercial performance.
Much of the momentum came from the beverages category, which recorded 29 percent volume growth during the quarter and continued to dominate Dairibord’s sales mix.
The company said investments made in late 2025 into bottled Cascade products and the Pfuko maheu range had started delivering results, helping strengthen production capacity in categories that continue to attract strong consumer demand.
Beverages accounted for 67 percent of the group’s product mix during the quarter, ahead of liquid milks at 24 percent and foods at 9 percent.
Dairibord also reported a 15 percent increase in liquid milk volumes following the commissioning of its Chipinge Steri plant in December last year.
The foods segment, which includes yoghurt products, recorded 31 percent growth. “The foods segment achieved a 31 percent increase, underpinned by strong demand, particularly within the yoghurt category,” the company said.
The company described the operating environment as more stable than in previous periods, helped by tighter fiscal and monetary policies that supported the Zimbabwe Gold currency and slowed inflationary pressures.
“The first quarter was characterised by sustained economic resilience and improving business confidence,” Dairibord said.
However, management warned that liquidity constraints in the local currency market were still limiting broader consumer spending power, with US dollar transactions continuing to dominate economic activity.
The group also faced rising operating costs linked to imported raw materials and global supply chain disruptions.
Global geopolitical tensions, particularly in the Middle East, were further complicating the cost environment. “Volatility in global oil markets has increased distribution costs and the pricing of petroleum-based packaging materials,” Dairibord warned.
Despite those pressures, Dairibord appears determined to continue pushing ahead with its growth strategy after committing more than US$11,8 million to capital expenditure last year.
That expansion programme was largely funded through borrowings, including relatively expensive local currency debt facilities carrying interest rates of up to 47 percent.
Still, management believes the investments are positioning the company for sustained long-term growth through improved efficiencies, stronger product availability and higher processing capacity.
Looking ahead, Dairibord said it expected growth momentum to continue into the second quarter, supported by recently commissioned production lines and a stronger focus on cash generation.
“Management remains focused on strengthening operational efficiencies and enhancing cash generation,” the company said.-herald
