Dairibord anticipates growth in Q2

SAMANTHA MADE

Despite a challenging operating environment in the first quarter of 2025, Dairibord Holdings Limited is forecasting growth in the second quarter, driven by consistent product supply and enhanced capacity across its key brands.

This outlook was shared by the company’s secretary, Maurice Karimupfumbi, who emphasized that Dairibord remains focused on prudent cost management and sustained cash generation to reinforce its financial performance.

“The growth momentum is expected to continue into the second quarter, supported by consistent product supply resulting from enhanced capacity across key brands. The Group will continue to prioritize cost management and positive cash generation to strengthen financial performance,” she said.

However, Karimupfumbi also highlighted persistent headwinds that weighed on operations during the first quarter, including liquidity constraints, cost pressures, utility supply issues, and pricing distortions.

“For the period which ended on 31 March 2025, the operating environment continued to present significant challenges. Principal among these were constrained liquidity and cost-push pressures.

The erratic supply of utilities further compounded these challenges, requiring the use of expensive alternatives for power and water, thereby contributing to the escalation in operating costs.

Additionally, sustained pricing distortions continued to exert considerable pressure on the formal retail channels, necessitating a strategic shift requiring agility and adaptation to evolving route-to-market dynamics,” she noted.

Despite these challenges, the company reported growth in key operational metrics. Raw milk intake rose by 8%, from 9.18 million litres in the comparative period last year to 9.95 million litres in the first quarter of 2025. Nationally, milk production increased by 3% over the same period, with Dairibord accounting for 36% of the total volume.

“The Group experienced an 8% increase in raw milk intake, rising from 9.18 million litres in the comparative period last year to 9.95 million litres. Concurrently, total national milk production recorded a 3% increase over the same period, with Dairibord accounting for 36% of the total volume,” said Karimupfumbi.

She also reported a 14% growth in consolidated sales volumes for the quarter, with the Beverages category performing particularly well, driven by demand for key products.

“Consolidated sales volume for the period grew by 14%. The Beverages category exhibited a 24% growth for the quarter, underpinned by strong performance from Pfuko Maheu and Quickbrew tea. Foods also gained momentum, growing by 19% anchored by yoghurts and Rabroy tomato sauce.

In contrast, Liquid Milks declined by 6% compared to the first quarter of 2024, due to production disruptions at the Steri Milk plant and the allocation of milk towards yoghurt production, which positively impacted the latter’s growth,” she said.