Published: 15 May 2025

Dairibord Holdings, a key player in Zimbabwe's dairy industry, reported an 18 percent increase in revenue to US$31.3 million for the first quarter ending 31 March 2025, despite facing significant environmental challenges including liquidity constraints and inconsistent utility services.

The company attributed its strong performance to sustained demand for its beverages and food products, coupled with strategic adjustments in production and distribution methods. However, it acknowledged ongoing economic difficulties such as liquidity shortages and cost-push inflation, which continued to compress profit margins.

Frequent power outages and disruptions in water supply further increased operational costs, forcing the firm to rely on more expensive alternatives. Additionally, distortions in pricing within formal retail channels compelled Dairibord to revise its route-to-market strategies, placing greater emphasis on flexibility to keep pace with changing consumer behaviors.

During the period under review, Dairibord processed 9.95 million litres of raw milk, representing an eight percent rise from 9.18 million litres recorded in the same quarter of the previous year. This volume accounted for 36 percent of Zimbabwe's total milk production, which itself grew modestly by three percent nationally.

The group's consolidated sales volumes grew by 14 percent, supported by increased production capacity. The beverages segment, driven by brands such as-PFuko Maheu and Quick Brew tea, surged 24 percent and contributed two-thirds of total sales. The food category also expanded, posting a 19 percent increase primarily due to strong sales of yoghurts and Rabroy tomato sauce. Conversely, liquid milk volumes declined by six percent, a result of temporary production stoppages at the Steri Milk plant and the strategic reallocation of milk towards yoghurt manufacturing.

Exports rose sharply by 36 percent year-on-year, reflecting robust regional demand. Significantly, 95 percent of Dairibord's sales were conducted in US dollars, up from 85 percent in 2024, providing the company with some protection against local currency volatility.

Revenue growth outstripped volume increases, buoyed by a favorable product mix. The group's trading update highlighted a focus on higher-margin products such as yoghurts and ready-to-drink beverages, which helped offset pressures in the liquid milk segment.

Looking ahead, Dairibord expressed optimism for the second quarter, citing enhanced production capacity and improved product availability. Company secretary Maurice Karimupfumbi noted, "We remain focused on cost containment and cash generation to sustain financial resilience."

The company plans to leverage export opportunities while continuing to manage domestic challenges related to utilities and liquidity.

Analyst Walter Mandeya of Trigrams Investments commented on the update, saying that although the decline in liquid milk sales underscored vulnerabilities to operational disruptions, Dairibord's shift toward value-added products like yoghurts demonstrates its ability to adapt effectively to market conditions.
- the herald

You might also want to read this

• Dairibord revenue growth up 17%
• Dairibord revenue up 17% in Q1
• Dairibord speaks on outbreak of listeriosis
• Dairibord mulls Malawi business closure
• Dairibord's configuring work 70% complete
• Dairibord need a deep staff rationalisation exercise
• Dairibord plans $10m capex
• Dairiboard targets 25% market share
• Dairibord unveils new product line
• Dairibord rolls out new plants