Milk processing giant, Dairibord Zimbabwe Limited (DZL) says a total 28, 5 million litres of raw milk was utilized in just a year on the back of the group’s resilient performance in the midst of a challenging economic environment.
Presenting an annual report for the period ended December 31 2022, DZL chairman, Josphat Sachikonye said during the year, there was a significant increase in raw milk uptake.
“Raw milk utilised for the year was 28, 5 million litres, 4% above 2021 and representing 34% of the total intake by processors as we remained the leading milk processor.
“The business aims to continuously grow high quality volumes of raw milk through our Milk Supply Development Unit (MSDU) by providing support to the farmers in critical areas which include feed formulation and nutrition, veterinary support, herd growth projects, input procurement facilities as well as sustainability and alternative energy options,” Sachikonye said.
Apart from the initiative, the group has also been capacitating dairy farmers through the MSDU to increase the herd and boost productivity at the farm level.
Despite erratic supply and high cost of quality water and electricity problems persisting and taking a knock on the cost of production, DZL’s performance remained resilient posting an impressive performance.
An operating profit of ZWL6.03bln [historical: ZWL4.35 bln] was recorded, a 154% increase [historical: 327% increase] over prior year.
After accounting for exchange losses, sundry income, and the net interest bill of ZWL 1,69bln, a profit before tax (PBT) of ZWL4, 34bln was achieved.
The high interest bill was on account of high interest rates which were affected in the second half of the year and borrowings to support the growing volumes and capital expenditure.
The cash flow from operations and new borrowings of ZWL5,5 billion was invested in capital equipment of ZWL1,8bln, which went towards expansion to boost volumes, replacements to improve efficiencies and to pay an interest bill of ZWL1,7 billion.