The Zimbabwes’ largest dairy company and one of the ZSE listed companies, Dairibord Holdings Limited (DZL.zw) saw quarterly revenue growth of 193% in their trading update for the first quarter ended 31 March 2021. Despite COVID 19 strains, level 4 lock down measures which had a negative impact on the company’s supply chains and trading hours, and the heavy rains which affected productivity, the company had an improved performance which saw it remain the largest milk processor in the country within the quarter, with 40% raw milk intake market share. The company remained liquid and has adequate strategies in place to sustain business continuity in the foreseeable future and protecting value in an operating environment that is improving and stabilizing but remains challenging.
Sales volumes increased by 18% over the same period in 2020 and growth was recorded across all product categories. Liquid milk sales grew by 10% on account of a significant growth in Lacto and Steri and the growth in this category is said to have been constrained by raw milk supply shortages. Foods grew 31% driven by excellent growth in yoghurts and ice creams. However, condiments were affected by input supply challenges and declined by 10%. Beverages volumes were 22% above those of the comparative period on account of growth in Pfuko and the dairy juice blends of Cascade and Fun ‘n’ Fresh.
In the update issued by the company secretary, Mr. S. Punzisani, the company confirms that it’s still in discussion with the unlisted entity Dendairy (PVT) LTD for a merger and acquisition of the companies, and they are confident that this transaction will materialize if it turns out successful.
Hinging on to the improving macroeconomic environment, Dairibord projects a better Q2 performance than Q1 which will be anchored by a continued volume growth trajectory and cost containment.