Leading manufacturer of milk products Dairibord Holdings sales increased in the third quarter by 32 percent ahead of the second quarter.

This comes after the company has experienced aggregate demand of milk products during the COVID-19 lockdown.

In a statement by the company secretary, Mr. Samson Punzisani said the demand for milk products improved in Q3 than in Q2.

“Growth was recorded across all product categories with liquid milk, foods, and beverages growing by 15%, 74%, and 50% respectively,” Punzisani said.

“Dairibord remains the processor of milk with the highest raw milk intake and widest milk intake base in the country. Production output grew on the back of improved supply of raw and packaging material, however, materials, labor, electricity, fuel and water costs continued to escalate.”

“Volumes for the quarter were 10% below Q3 of 2019 showing a recovery compared to the 46% decline recorded in Q2 2020 vs Q2 2019. Revenue for the quarter in inflation adjusted terms was 43% (155% in historical terms) above the prior quarter and 8% (810% in historical terms) above Q3 2019. Year to date revenue was 8% below the same period in 2019,” he said.

The cumulative reduction is on account of depressed H1 performance. Year to date operating margins increased to 8% compared to 6% in 2019.

“The drive to generate foreign currency revenue and contribute towards the company’s foreign currency requirements continued to bear fruit with year to date foreign currency revenue up 50% from 2019,” Punzisani said.

This improvement is on the back of foreign currency exchange rate stability, reduced month on month inflation, and relaxation of COVID-19 lockdown restrictions.

Kundai Mudzviti – Business Mail