Dairibord Posts Strong Q1 Growth Driven by Beverag...

Dairibord Posts Strong Q1 Growth Driven by Beverages, Export Surge

Nyashadzashe Ndoro- Chief Reporter

Dairibord Holdings recorded a 14% increase in consolidated sales volumes and an 18% rise in revenue to US$31.3 million for the quarter ending March 31, 2025, despite operating in a tough economic environment marked by liquidity constraints, rising costs, and unreliable utility supplies.

In a trading update, the company said the beverages category led growth with a 24% surge in volume, driven by solid performances from Pfuko maheu and Quickbrew tea. The foods segment followed with a 19% volume rise, attributed mainly to increased demand for yoghurts and Rabroy tomato sauce.

Meanwhile, the liquid milks category declined 6% in volume compared to the same period in 2024. Dairibord cited production disruptions at the Steri Milk plant and a strategic decision to channel milk into yoghurt production to meet higher demand. Beverages accounted for the largest share of sales volume at 66%, followed by liquid milks at 25% and foods at 9%.

Raw milk intake rose by 8% to 9.95 million litres, up from 9.18 million litres in the first quarter of 2024. This represented 36% of total national milk production, which itself grew by 3% over the same period.

The company also reported a 36% year-on-year increase in export volumes. Additionally, US dollar-denominated sales rose to 95%, up from 85% in Q1 2024.

Looking ahead, Dairibord projects continued momentum in the second quarter, underpinned by improved product supply from recent investments in production capacity. The Group said it will maintain its focus on cost control and cash generation to strengthen its financial performance.

However, it flagged persistent challenges, including erratic utility supply, which forced reliance on costly alternative sources of power and water. The company also noted that pricing distortions in the formal retail market are pushing it to recalibrate its distribution strategies.