Dairibord intensifies risk management
SAMANTHA MADE
Dairibord Holdings Limited, a publicly traded milk producer, says it is intensifying risk management and hedging strategies to mitigate exposures as the business continues to operate in an unpredictable environment.
The development was revealed by the group’s board chairman, Nobert Chiromo.
“Although the first half reflected relative stability, the business continues to operate in a volatile and unpredictable environment. The Group is therefore intensifying risk management and hedging strategies to mitigate exposures, sustaining its focus on cost containment and efficiency,” Chiromo said.
To support this strategy, the company will pursue aggressive investment in replacing and refurbishing critical equipment to boost production capacity and position the group for volume growth into 2026 and beyond.
A favorable 2024/2025 agricultural season enhanced food security and foreign currency inflows, further reinforcing market stability. However, constrained liquidity persisted in both ZWG and US$ terms.
The group commended the enactment of Statutory Instrument 34 of 2025, which removed penalties for businesses pricing above official exchange rates.
“This reform enabled greater pricing flexibility, improved alignment with market realities, and strengthened profitability prospects,” Chiromo said.
The retail sector also benefited from the policy shift, which helped improve supply chain stability. While water and electricity supply remained erratic, Dairibord noted a slight improvement compared to the prior year.
In terms of volumes and revenue, the group achieved an 18% growth in overall sales volume in the six months to June 30, 2025.
Food sales increased by 18%, driven by strong performance in yogurt and tomato sauce. Beverages surged 28%, led by exceptional demand for Pfuko and Cascade, alongside a recovery in Tea due to improved availability. Liquid Milks recorded a modest 1% increase, while export volumes declined slightly from 9% to 8% of total volumes.
Group revenue rose by 18% to US$64.32m, largely on the back of volume growth.
Despite seasonal cash flow challenges during the winter period, Chiromo said the group achieved a significant turnaround in operating cash flows, reducing the deficit from US$2.32m in the prior period to just US$38,322.
“Enhanced credit risk management and improved inventory turnover practices are expected to further strengthen cash flow generation in the second half,” Chiromo said.
