Dairibord liquid milk sales 21% up

Dairibord Holdings experienced a mixed first half of 2024, with varied impacts from policy changes, production adjustments, and export growth.

The company faced increased production costs due to the implementation of a sugar tax, which added to the financial strain on beverage production.

These policy-driven cost hikes have contributed to the overall decline in beverage volumes.

Dairibord’s performance in the first half of 2024:

The Good:

Sales of liquid milks (Chimombe, Steri, Lacto) up 21% due to higher production from dairy farmers.

Farmers increased milk output by 22% to 55.1m litres over the half-year.

Dairibord bought 19.97m litres of this milk, 40% more than it did in the same period in 2023.

Dairibord has grown its milk market share from 28% in 2023 to 36%.

• The foods division was up 25%, driven by strong sales of Yummy yoghurt and ice creams, and a recovery from Lyons peanut butter.

• Exports grew strongly, up 59%.

• Revenue up 13% to US$54.71m. Dairibord back in profit, swinging from last year’s loss of US$0.74m to a US$3.06m profit

The Not So Good:

• Beverages sales down 8%. Pfuko was held back by the sugar tax and VAT measures, plus the lack of small change.

• The rapid depreciation of the local currency before the arrival of ZiG resulted in net foreign exchange losses of US$3.3 million.

• The drought may affect raw product supply this year.