Dairibord Holdings recorded a strong start to 2026, with first-quarter sales volumes rising 26%, extending a recovery trend that has gathered momentum over the past two years as the company invests in production capacity, product diversification and route-to-market expansion.

The dairy and beverages manufacturer said beverages remained the anchor of the business, contributing 67% of total product mix after volumes in the segment grew 29%, supported by investments into the Cascade and Pfuko Maheu brands. Liquid milks increased 15% following the commissioning of a new Steri Milk plant in Chipinge, while the foods category expanded 31%, largely driven by yoghurt demand.

The latest performance builds on Dairibord’s gradual rebound from difficult trading conditions experienced between 2019 and 2022, when inflation volatility, currency instability and weak consumer spending weighed heavily on volumes and profitability.

In its 2023 financial year, Dairibord reported a 10% increase in sales volumes, recovering from earlier contractions linked to exchange rate distortions and declining disposable incomes. The beverages category had already begun regaining traction during that period, while yoghurt and traditional fermented products increasingly became growth drivers amid changing consumer preferences.

By 2024, the company accelerated capital expenditure targeting processing efficiency and product innovation. Investments into sterilised milk production, maheu expansion and improved packaging lines became central to its strategy to defend market share against growing competition from regional imports and local producers.

The first quarter 2026 results suggest that strategy is now translating into stronger volume growth across core business units.

The commissioning of the Chipinge Steri Milk plant is particularly significant given Zimbabwe’s long-running milk supply challenges. National raw milk production has historically struggled to fully satisfy domestic demand, despite gradual recovery in recent years.

According to dairy industry data, Zimbabwe’s raw milk output fell from over 260 million litres annually in the early 1990s to below 40 million litres during the peak of the agricultural decline period before recovering to above 100 million litres in recent years. Processors such as Dairibord have increasingly relied on product innovation and value-added lines to sustain margins and market presence.

Dairibord’s beverage-focused growth strategy also reflects broader consumption trends within Zimbabwe’s fast-moving consumer goods sector, where affordable drinks and value products have remained more resilient than premium food categories during periods of economic pressure.

However, the company warned that operating conditions remain difficult despite the strong volume performance.

“Ongoing electricity shortages necessitated increased reliance on alternative energy sources, while certain production sites incurred additional costs from purchased water,” the company said.

The utility constraints mirror wider challenges affecting Zimbabwe’s manufacturing sector, where firms continue facing high operating costs linked to power shortages, water supply disruptions and currency-related pricing pressures.

Manufacturing sector surveys by business groups including the Confederation of Zimbabwe Industries have consistently identified electricity reliability as one of the largest constraints to industrial productivity over the past five years.

Dairibord’s latest performance comes as Zimbabwe’s consumer sector shows signs of stabilisation under relatively lower inflation conditions compared to previous years, helping support demand recovery across selected product categories.