Dairibord pins growth on operational resilience

STAFF WRITER

Dairibord Holdings Limited, a  publicly traded milk processing firm, has unveiled a strategy centred on operational resilience, product innovation, and cost efficiency as it navigates a rapidly shifting consumer landscape marked by the continued rise of the informal sector and sluggish activity in the formal retail market.

In its trading update for the quarter to 30 September 2025, the dairy and beverages group said it is doubling down on efficiency gains and disciplined capital allocation to defend market share and sustain growth momentum in an economy where purchasing power remains fragile and supply chains are increasingly exposed to global shocks.

Company secretary Maurice Karimupfumbi said Dairibord will continue to execute a long-term strategy designed to “maintain dominance and remain relevant” in a complex operating environment.
“The group remains focused on delivering sustainable growth and value creation through the execution of key strategic priorities, namely: capital projects; commissioning key investments to expand production capacity and improve product availability and cost efficiency; continuing to optimise operating costs and strengthen cash generation. The group will also enhance research and development to introduce improved and new product offerings, thereby broadening the portfolio and deepening market competitiveness,” Karimupfumbi said.

The board said it remains confident that operational discipline, a deeper innovation pipeline, and the commissioning of new production assets will position Dairibord for stronger performance over the medium to long term.

During the period under review, the group procured 10.8 m litres of raw milk, representing 36.7% of national output. Cumulative intake for the nine months to 30 September stood at 31.1 m litres,  a marginal 0.8% decline year-on-year,  but still equivalent to 35% of total national production.

Analysts note that maintaining supply stability in a sector heavily dependent on small-scale farmers is critical, particularly as input costs, feedstock availability, and foreign-currency shortages continue to affect the dairy value chain.

Dairibord recorded a 4% increase in total sales volumes for the quarter compared to the same period in 2024. The performance was driven by an 11% expansion in beverages and a 23% surge in foods, partially offset by a 15% drop in liquid milk volumes.

Over the nine-month period, cumulative sales volumes rose a solid 13% year-on-year,  with beverages up 22% and foods up 20%, while liquid milks fell 5%. Product category contributions show beverages commanding 64% of total sales volumes, followed by liquid milks at 26% and foods at 10%.

Revenue for the nine months increased by 7% to US$111.8 million, supported primarily by volume growth, highlighting the group’s ability to push throughput in a weak macroeconomic environment.

Karimupfumbi said the operating environment in the third quarter remained “relatively stable”, in line with trends observed in the first half of the year, with currency stability underpinned by tight monetary policy.

However, constrained liquidity continues to limit consumer spending power and the performance of the formal retail sector, where the group has traditionally anchored its distribution strength. Sales are increasingly being shaped by informal traders, who now dominate a significant share of food and beverage retailing across the country.

At the same time, Dairibord faced significant external headwinds as global supply chain disruptions tied to ongoing geopolitical tensions pushed up the cost of imported materials and extended lead times for essential inputs.