Dairibord volumes jump 22pc

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

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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.

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Revenues rose 6 percent as a result.

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

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

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

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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.

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“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.

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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.

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