Dairibord Holdings' interim financials get clean b...

Dairibord Holdings' interim financials get clean bill of health from auditors

Nyashadzashe Ndoro

Chief Reporter

Deloitte & Touche Chartered Accountants has given Dairibord Holdings Limited's interim financial statements for the six months ended June 30, 2024, a clean audit opinion.

The auditors concluded that the financial statements "present fairly, in all material respects, the financial position of the Group as at June 30, 2024, and its financial performance and cash flows for the six-month period then ended."

Despite navigating a challenging economic environment characterized by high inflation, exchange rate volatility, and depreciation of the local currency, Dairibord Holdings reported a profit of US$3.06 million for the period under review. This marks a significant recovery from the US$0.74 million loss incurred in the corresponding period last year.

According to the company's chairman J Sachikonye, the introduction of the Zimbabwe Gold currency in April resulted in stabilisation of both the exchange rate and inflation, thereby creating a more predictable and conducive market environment.

According to the Zimbabwe National Statistics Agency, United States Dollar prices declined by a modest 0.3% and ZWG prices increased by a negligible 0.04% in June 2024.

Dairibord Holdings' raw milk production surged by 22% year-on-year, with the Group utilizing 19.97 million litres, representing a 40% increase. Sales volume grew by 2%, driven by strong performances in Liquid Milks and Foods categories. Export volume increased by 59%, contributing 9% to overall sales. Revenue rose by 13% to $54.71 million. The Group's market share in raw milk expanded from 28% in 2023 to 36% in the current period.

However, the economic outlook remains uncertain, with slow global economic growth, foreign currency shortages, and drought conditions expected to impact agricultural yields and row milk production. To mitigate these challenges, Dairibord Holdings will prioritize cost reduction, expansion of export activities, and commercialization of its toll manufacturing operations in South Africa.

The Board has resolved to withhold dividend payment for the six-month period to conserve financial resources for strategic objectives.

Sachikonye expressed gratitude to stakeholders for their support and dedication, stating, "Together, we have navigated challenges and celebrated achievements, and I am confident that with your continued partnership, we will reach even greater heights.” Dairibord Holdings' interim financials get clean bill of health from auditors