Dairibord need a deep staff rationalisation exercise

Dairibord need a deep staff rationalisation exercise
Published: 10 August 2017
Dairibord Holdings Limited released a mixed set of numbers showing a 5.1% growth in revenue and an attributable loss of $0.8m. The overall operating performance improved from an operating loss of $2.1m to an operating profit of $0.2m.

Volumes grew by 4% to 37.4m litres driven by growth in Liquid Milks up 2%, Foods up 10% and Beverages up 3%. The average selling price per litre firmed to $1.15 from USD1.14, a 1% increase on H1 16. The increase was on account of the change in product mix driven by growth in the Foods category which have a higher selling price per litre.

Overheads declined by 8% to $18.7m benefiting from staff rationalisation of the prior year. Imara Stockbrokers analysts said their view is that there is a need for a deep staff rationalisation exercise. Finance charges were maintained at the same level as the prior year at $0.5m due to a relatively high average debt despite cost of funds declining from 8.7% to 8.4% per annum. No dividend was declared.

The balance sheet narrowed by 7.3% from year-end to $69.1m. Operating cash flow decreased from an outflow of $0.8m to $1.3m with a net cash outflow from working capital of $2.7m compared to an outflow of $0.3m in the prior year. The investing section indicates that the company deployed $0.9m towards both expansionary and maintenance capital expenditure to improve the efficiency of the plant and bolster new products on the market compared to $2.4m in H1 16.
- BD
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