Source: Dairibord revenue climbs to US$82,6 million on strong demand – herald
Sikhulekelani Moyo, sikhu.moyo@chronicle.co.zw
DAIRIBORD Holdings recorded strong growth in volumes and profitability during the six months to June 30, 2026, buoyed by capacity expansion, robust domestic demand and disciplined cost management.
In a statement accompanying the group’s reviewed condensed consolidated financial statements, chairman Mr Nobert Chiromo said consolidated sales volumes rose 26 percent to 78,3 million litres from 62 million litres during the corresponding period last year, while raw milk utilisation remained broadly unchanged at 20,4 million litres.
Beverages continued to be the group’s dominant business segment, contributing 67 percent of total sales volumes.
The portfolio recorded a 33 percent year-on-year increase, rising to 52,8 million litres from 39,6 million litres.
“All beverage lines recorded growth, with Quench cordial achieving an exceptional 82 percent increase compared to prior year,” said Mr Chiromo.
He said strategic capital investment at the Simon Mazorodze factory unlocked additional production capacity for bottled Cascade, resulting in a 68 percent increase in volumes.
“Fun n Fresh and Pfuko Maheu grew by 56 percent and 43 percent respectively. Pfuko also benefitted from capacity expansion at the Chitungwiza plant, which enhanced production capability and product availability,” he added.
The foods category delivered the group’s second-highest growth rate, with sales volumes climbing 30 percent to 7,3 million litres.
Mr Chiromo said the performance was driven by strong demand across several product lines, with bulk ice cream increasing by 80 percent, salad cream by 72 percent, Yogie drinking yoghurt by 42 percent and Yummy Yoghurt by 25 percent.
He also noted that liquid milk volumes posted moderate growth, rising eight percent to 18,2 million litres.
“Category expansion was constrained by raw milk supply rather than market demand,” Mr Chiromo said, adding that Steri Milk registered 72 percent year-on-year growth after beneftting from additional production capacity at the newly commissioned Chipinge facility in December.
The group said export volumes declined by 30 percent as production was strategically redirected to satisfy strong domestic demand across all product categories, ensuring consistent market availability and supporting growth in the local market.
On the financial front, Dairibord Holdings recorded a 28 percent increase in revenue to US$82,56 million from US$64,32 million, supported by higher volumes as well as a more stable pricing and currency environment.
Revenue from the South African operation grew 38 percent to US$0,72 million from US$0,52 million, while the cost of sales increased 25 percent to US$60,87 million.
“Gross profit increased 37 percent to US$21,69 million from US$15,78 million, reflecting the benefit of higher volumes together with disciplined management of raw and packaging material
costs,” said Mr Chiromo.
“Operating expenses grew slower than revenue. Selling and distribution expenses were up 16 percent to US$10,14 million and administration expenses up 35 percent to US$6,03 million.
“As a result, operating profit more than doubled to US$5,54 million from US$2,76 million. Finance costs rose to US$1,15 million from US$0,72 million due to borrowings for capex and working capital.”
Mr Chiromo said sustainability continued to underpin the group’s long-term growth strategy as it seeks to strengthen operational efficiency and secure raw milk supplies.
“We continue to focus on reducing our environmental footprint through improved energy and water efficiency, responsible waste management and recycling, while investing in the resilience and development of dairy farmers who are critical to our raw milk supply,” said Mr Chiromo.
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