Dairibord to rollout solar plants
CLOUDINE MATOLA
Zimbabwe’s largest milk processor, Dairibord Holdings Limited, is set to roll out solar power plants across all its production sites as it moves to reduce reliance on the national grid and shrink its carbon footprint, Business Times can report.
The initiative follows the successful commissioning of the Chipinge solar plant, which the group now regards as a blueprint for its broader renewable energy transition.
Dairibord chairman, Nobert Chiromo, said that the energy projects mark a significant shift not only for the company, but for Zimbabwe’s renewable energy landscape.
“On the energy front, we have reached a significant milestone with the commissioning of the Chipinge Solar Plant. This facility serves as the blueprint for our renewable energy transition, with plans already underway to roll out the same model across all our production sites to reduce grid dependency and carbon intensity,” Chiromo said.
The solar push comes at a time when global energy markets remain volatile, with geopolitical tensions, particularly in the Middle East, driving fuel price increases and amplifying cost pressures for manufacturers.
Chiromo said the group is implementing cost optimisation and strategic procurement measures to cushion the business from imported inflation.
“Ongoing geopolitical tensions in the Middle East continue to disrupt global energy markets, driving fuel price increases that have cascading effects on logistics, production, and input costs across the economy. These developments have introduced significant imported inflationary pressures, placing strain on consumer purchasing power and business operating costs,” he said.
“The board is closely monitoring these developments and has put in place proactive measures to mitigate their impact, including cost optimisation initiatives and strategic procurement practices to safeguard the Company’s operational resilience.”
Beyond energy, Dairibord is sharpening its competitive edge in response to rising informal sector activity and shifting consumer behaviour.
“The group will focus on protecting its market leadership through targeted investments in growth opportunities, product quality and availability, and route-to-market capabilities, in order to remain competitive in a market characterised by increasing informal sector participation and evolving consumer purchasing patterns,” Chiromo added.
Despite strong operational gains, profitability came under pressure during the period. The group’s profit for the year declined 17% to US$3.12m, down from US$3.78m in 2024, largely due to a higher tax charge.
However, underlying performance remained robust. Finance costs fell sharply by 50% to US$1.54m from US$3.05m, following the elimination of foreign exchange losses on foreign currency-denominated liabilities after the group adopted a functional currency change in early 2024.
This cost relief helped drive a 64% surge in profit before tax, which rose to US$5.34m from US$3.22m in the prior year.
Revenue climbed to US$137.42m, underscoring sustained business momentum, while the proportion of volumes sold in US dollars increased to 96%, up from 83% in the comparable period.
Operationally, Dairibord processed 42.5m litres of raw milk during the year, translating to an estimated 35% share of the formal milk processing market, reinforcing its dominance in Zimbabwe’s dairy industry.
