Dairibord Holdings Limited Reports 11% Increase in Sales Volume, Beverage Category Thrives While Food Category Declines by 21%
- What is the key takeaway from Dairibord Holdings Limited's 2023 financial statement?
- Despite the challenging and unpredictable operating environment in 2023, Dairibord Holdings Limited managed to increase its sales volume and annual revenue, and it ended the year with a profit. However, the company faced significant foreign exchange losses due to rapid currency depreciation, affecting overall performance. The company will continue its expansion plans and focus on improving its product offerings going into 2024.
Summary
- Dairibord Holdings Limited faced a complex economic environment in 2023.
- The operating environment was characterized by rapid devaluation of the Zimbabwe dollar, tight liquidity and unpredictable market conditions.
- Supply chain disruptions on imported inputs, equipment, and machinery increased business operations cost.
- The monetary and fiscal interventions taken slowed down inflationary pressures and market volatility, but they suppressed consumer buying power.
- National milk production output increased by 8.79%, and the company’s milk intake increased by approximately 10%.
- Sales volume increased by 11%, with consistent growth in the beverage category, but the food category declined by 21%.
- The company’s annual revenue was ZWL$724.12 billion, 47% ahead of the previous year due to the increase in sales volumes and strategic price adjustments.
- 84% of the total revenue was accounted through foreign currency, up from 58% in 2022.
- The major transactions were denominated in ZWL$, implying the continuation of ZWL$ as the group’s functional currency.
- The group’s operating profit grew by 48% to ZWL$69.31 billion, with an operating profit margin of 9.57%.
- There were significant foreign exchange losses due to the rapid depreciation of the local currency. This loss affected the overall performance of the business negatively.
- Despite the economic challenges, the company achieved a profit for the year of ZWL$6.90 billion.
- Dairibord Holdings limited continues to explore avenues for expansion domestically and regionally for the year 2024.
Useful links
- Dairibord Holdings Limited (DZL.zw) 2023 Abridged Report
- Dairibord Holdings Limited on AfricanFinancials
- Corporate Website
About Dairibord Holdings Limited (DZL.zw)
Dairibord Zimbabwe Private Limited (DZL Holdings Limited) is the largest dairy company in Zimbabwe; producing and marketing a range of fresh milk and ready-to-drink and long-life milk products. The company also owns Lyons Zimbabwe; a food company that manufactures and markets ice-cream, cordials, condiments and spreads, tea and mineral water; ME Charhons which manufactures biscuits and baking products; and has a majority stake in Dairibord Malawi. The company is wholly-owned by Lavenson Investments Private Limited and is the flagship subsidiary of Dairiboard Holdings Limited. DZL Holdings Limited owns four property companies; Goldblum Investments (Private) Limited, Chatmoss Properties (Private) Limited, Quallinnex Properties (Private) Limited and Slimline Investments (Private) Limited. Its export markets include Zambia, Botswana, Malawi, Mozambique and South Africa. Dairibord Zimbabwe Private Limited is listed on the Zimbabwe Stock Exchange
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