Dairibord volumes jump 22pc

28 May, 2015 - 18:05 0 Views
Dairibord volumes jump 22pc Dairibord Holdings chief executive Mr Anthony Mandiwanza at the group's financial results presentation - Picture by Kudakwashe Hunda

The Sunday Mail

Dairibord Holdings chief executive Mr Anthony Mandiwanza at the group's financial results presentation - Picture by Kudakwashe Hunda

Dairibord Holdings chief executive Mr Anthony Mandiwanza at the group’s financial results presentation – Picture by Kudakwashe Hunda

DAIRIBORD Zimbabwe Limited (DZL) reported today that the company’s total sales volumes jumped 22 percent in the four month period to April 2015 despite a harsh operating environment.

Revenues rose 6 percent as a result.

However, raw milk uptake slumped 3 percent from the same period a year earlier.

On the overall, the beverages contribution to group’s total sales volumes increased to 54 percent from 40 percent last year.

Liquid milks contribution declined to 32 percent from 43 percent , while sales in the foods category also  fell to 14 percent from 17 percent.

Group chief executive Mr Anthony Mandiwanza indicated that the business environment continues to be challenging in both Zimbabwe and In Zimbabwe, shrinking disposable incomes and an ever-growing informal sector is affecting demand, while in  Malawi flooding in January and February had a negative impact on milk collection and distribution.

“Declining disposable incomes will impact demand for luxuries which includes most of the Group’s products in the foods category,” he said in a trading update.

However, the group  expects to commission a steri plant in Chipinge,  a development that will  increase volumes for liquid milks as well as improve efficiency.

DZL also plans to increase exports into Zambia and improve local distribution of its products.

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