Dairibord grapples with persistent headwinds
LIVINGSTONE MARUFU
Dairibord Holdings Limited, a publicly traded milk processor, continues to face significant operational headwinds despite operating in a relatively stable macroeconomic environment.
The first quarter of 2026 was characterised by sustained economic resilience and improving business confidence, supported by stable output across key productive sectors. Fiscal and monetary policy measures also contributed to the stabilisation of the Zimbabwe Gold (ZWG), resulting in a comparatively lower inflation environment than during the same period last year.
However, company secretary Maurice Karimupfumbi said the operating environment remains challenging.
“Notwithstanding this progress, tight management of ZWG liquidity continued to constrain consumer spending, further reinforcing the predominance of US dollar-denominated transactions,” Karimupfumbi said.
She noted that unreliable utility supplies continued to weigh on operations.
“Ongoing electricity shortages necessitated increased reliance on alternative energy sources, while certain production sites incurred additional costs from purchased water, collectively exerting upward pressure on operating expenses,” she said.
In addition, global geopolitical developments continued to disrupt supply chains, driving volatility in fuel, raw material and packaging costs.
“These pressures were compounded by extended lead times for imported inputs,” Karimupfumbi added.
Despite the challenges, the group recorded strong volume growth of 26% during the first quarter of 2026, driven by double-digit increases across all core product categories.
The commissioning of the Chipinge Steri plant in December 2025 supported a 15% increase in liquid milk volumes. Capital investments undertaken in the fourth quarter of 2025 in bottled Cascade and Pfuko maheu products also contributed to a 29% growth in the beverages category.
The foods segment registered a 31% increase, underpinned by strong demand, particularly in the yoghurt category.
“This performance reflects the group’s strategic focus on capacity expansion and optimisation of its route-to-market initiatives,” Karimupfumbi said.
Product mix remained weighted towards beverages, which accounted for 67% of total volumes, followed by liquid milks at 24% and foods at 9%.
Export volumes, however, declined by 40% year-on-year as the group prioritised servicing rising domestic demand.
Revenue for the quarter reached US$39.4 million, representing a 26% increase compared to the same period last year.
Looking ahead, the group expects growth momentum to continue into the second quarter, supported by improved product availability following recent capacity enhancements across key brands.
Management says its focus remains on strengthening operational efficiencies and improving cash generation amid persistent economic and operational headwinds.
