Dairibord Zimbabwe Limited’s revenue for the nine months ending September 30, 2023, surged 837 percent compared to the same period last year, propelled by robust volume growth across its product segments, the company said in its latest trading update.
In US dollar terms, cumulative revenue grew by 27 percent to US$82,4 million, primarily driven by volume growth. For the third quarter, 93 percent of sales were transacted in US dollars, while for the cumulative period, 74 percent of sales were in greenback compared to 51 percent in the previous year, the company said.
Domestic sales revenue and exports for the quarter grew by 870 percent and 1,213 percent respectively.
Operating costs increased by 784 percent, reflecting effective cost management strategies.
The combined impact of sales volume growth, cost reduction measures, and the local currency’s appreciation in July 2023, which resulted in significant foreign exchange gains, contributed to an improved operating performance. For the cumulative period, operating profit increased by 169 percent over the previous year.
Sales volumes for the quarter reached 25,8 million liters, representing an 11 percent increase compared to the same period last year. Liquid milks and beverages witnessed growth of 16 percent and 14 percent, respectively, while foods experienced a 24 percent decline. Exports increased by 7 percent and accounted for 11 percent of total sales volumes in the third quarter, the company said.
Cumulative sales volumes for the nine months surpassed the same period last year by 10 percent.
Beverages contributed 65 percent, Liquid Milks 28 percent, and foods 7 percent to the overall volume.
Beverages recorded a 5 percent increase, with liquid milks achieving a 9 percent growth.
Foods sales volumes declined by 23 percent due to intermittent supply disruptions of quality inputs and route-to-market disruptions negatively impacting demand.
The company processed 22,4 million liters in the nine-month period under review, 13 percent above the comparative period last year. This was ahead of the 10 percent growth in national raw milk production. The volume constituted 34 percent of the milk received by processors.