Dairibord back in black with $1,3mln FY17 profit


HARARE,– Dairibord bounced back to profitability with an after tax profit of $1,34 million for the year to December 31, 2017, from a loss of $5,5 million in the prior year on higher sales and cost cuts.

Revenue was up 10 percent to $103,1 million from $93,4 million in the previous year with gross profit up 12 percent to $28,9 million from $25,8 million in the previous year. The company made an operating profit of $4,1 million from an operating loss of $3,9 million in the prior year on lower overheads.

Volumes sold increased by 8 percent to 89,4 million litres from 82,9 million liters previously. Overheads declined by 16 percent to $25,1 million from $29,9 million in the preceding year.

Earnings before interest, tax , depreciation and amortisation (EBITDA), increased seven fold to $9,52 million from $1,3 million previously.

Total assets, however, fell to $72,2 million from $74,5 million while borrowings dropped to $7,8 million from $10,5 million previously.

The company invested $2,4 million in property, plant and equipment in the year, with significant investments in the sachet packing line, refrigeration equipment and water reservoir for the Chitungwiza factory.

Going forward, the company expects growth to be driven mainly by cartonised milks and beverages. However, margins will remain under pressure due to shortages of hard currency and inflation.

Dairibord Malawi continues to have a negative impact on the group performance, with an operating loss of $551,000 posted in 2017.

The company declared a dividend of 0,2 cents per share. – Source