HARARE — Dairibord Zimbabwe Limited (DZL), a leading listed milk processing company, recorded a 44% increase in raw milk intake for the third quarter ending 30 September 2024, significantly surpassing the national growth rate of 16.7% for the same period.
In a trading update, DZL company secretary Maurice Karimupfumbi reported that the company processed 11.8 million litres of raw milk during the quarter, up from 8.2 million litres in the corresponding period last year. DZL now accounts for 36.7% of the national milk production.
“The Group’s raw milk intake experienced substantial growth,” Karimupfumbi said. “This growth exceeds the national milk intake increase among processors, highlighting DZL’s strong performance in the sector.”
Strong Sales Growth
The company also posted robust sales across key product categories:
- Overall sales volumes increased by 29%, driven by strong performance in the Milks and Foods segments.
- Liquid milk sales grew by 32% year-on-year, while the Foods category posted an impressive 81% increase.
- The Beverages segment recorded 22% growth over the previous year.
For the nine months to September, cumulative sales volumes rose by 11% compared to the same period last year. Beverages accounted for 60% of total sales volumes, followed by liquid milk at 31%, and Foods at 9%.
Revenue and Exports
Revenue for the quarter grew by 37% year-on-year, reflecting the company’s expanded market penetration.
While sales volumes in the US dollar dropped to 74% in Q3, down from 93% last year, the cumulative nine-month volume of US dollar sales rose from 74% to 81%. Exports contributed 5% of total sales volumes in Q3, compared to 11% during the same period in 2023.
Future Plans
Looking ahead, DZL aims to sustain its growth trajectory by focusing on:
- Enhancing processing capabilities through capital investments.
- Expanding market penetration domestically and abroad.
- Increasing exports.
- Strengthening cost management strategies.
- Investing in staff development.
The company’s growth initiatives position it as a key player in Zimbabwe’s dairy sector, with ambitious plans to maintain its leadership and contribute to national milk production growth.