LISTED milk, foods and beverages manufacturer, Dairibord Zimbabwe Limited (DZL) has maintained pole position as the highest milk intake processor on the market, latest industry reports have revealed.
The developments are in line with data reported by the Agriculture Ministry’s Dairy Services Department showing that during the first half of 2022, milk intake by processors rose 17% to 38,96m litres from 33, 42 million litres in the comparative period.
“Dairibord utilised 12,29 million liters, representing 32% of the total intake by processors. The group retains its position as the processor with the highest milk intake, albeit at lower levels. The price of stock feed continued to rise in line with food inflation pressure.
“The group has elevated initiatives for aggressive milk supply development for low cost and high-volume milk production. The long term benefits will be competitive local milk prices, import substitution of milk powders and
opportunities for export growth,” said DZL.
Meanwhile, during the six months ended June 30 2022, the entity’s demand for products remained firm across all categories.
Overall sales volumes for the period grew 11% ahead of the same period last year 40% of the total sales volume was sold in foreign currency, with 8% going into the export markets and 32% through the domestic market.
Liquid milks’ contribution to total volume was 28%, Foods 10% and Beverages 62%.
“This affirms the growing contribution of non-milk product categories and product portfolio diversification, in line with our “more than just milk” strategy. Inflation adjusted revenue grew 40% to ZW$17,12 billion compared
to the same period last year.
“The growth in revenue was driven by growth in volumes and moderate price adjustments to preserve margins,” said DZL.
The operating profit margin for the period was 7% up from 4% in the prior period.
“In view of the headwinds in the operating environment and increased working capital requirements, the company’s board has resolved to pass the payment of a dividend,” added DZL.