Dairiboard Holdings Limited (Zimbabwe) 2021 Q3 sales increases by 78% YOY

By Published On: October 22nd, 2021Categories: Corporate announcement, Earnings

OPERATING ENVIRONMENT
The operating environment for the three months to 30 September 2021 was affected by the level 4 COVID-19 lockdown restrictions between 29 June and 07 September 2021, but the impact was not as severe as that experienced in 2020. The widening margin between the official and parallel exchange rate exerted pressure on margins and threatens the positive inflation trend that saw Year-on-Year inflation decline from 659.40% in September 2020 to 51.55% in September 2021.

PERFORMANCE
Raw milk utilised in the quarter was up 7% from Q2 and up 5% over prior year. Cumulative raw milk utilised was 3% ahead of prior year. Milk supply remains constrained by the high cost of stock feeds. The Government launched command silage, a welcome initiative intended to support dairy farmers grow their own silage in order to improve stock feed availability and reduce cost of milk production.This should see improved milk production in the ensuing year.

Q3 sales volumes grew by 78% over same period last year and 23% over prior quarter. Year to date sales volumes of 67 million litres were 63% above the same period last year. The Beverages category anchored the growth with a 165% increase over prior year, whilst the Foods category grew by 49%. Liquid Milks surpassed previous year by 13%. However, growth in the Liquid Milks category was constrained by raw milk supply shortages.

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