Dairibord Holdings Limited has engineered a remarkable financial turnaround, slashing its working capital deficit by 98.3% to just US$38,322 for the half-year ending June 30, 2025. This significant improvement, a stark contrast to the US$2.32 million deficit reported in the same period last year, has freed up vital liquidity for the company's operations and strategic capital projects.
The dairy giant's swift reversal of its cash flow position, achieved even during the seasonal challenges of the winter period, is a testament to its strengthened financial controls. Dairibord chairman, Nobert Chiromo, attributed the success to enhanced credit management and more efficient inventory turnover practices. In a statement attached to the company’s financial report, he noted that these strategies provided the foundation for the group to navigate a volatile market and support modest profit growth.
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Dairibord's improved liquidity was also a result of a sharp 31.22% reduction in expenses, which fell to US$13.63 million from the prior year's comparative period. This cost-cutting across selling, distribution, and administrative functions, combined with a focus on efficiency, has positioned the company for future expansion. The group is now prioritizing aggressive investment in the replacement and refurbishment of critical equipment to boost production capacity and support volume growth into 2026 and beyond.
The strong cash position also allowed the company to reduce its debt, with trade and other payables decreasing from US$17.77 million at the end of 2024 to US$13.3 million. This has left Dairibord in a healthy liquid position, with US$1.50 for every dollar of short-term debt.
Despite the financial discipline, the company did not compromise on growth. Group revenue increased by 18% to US$64.32 million, driven largely by volume growth. Performance was particularly strong in the Beverages category, which saw a 28% increase, fueled by exceptional sales of Pfuko and Cascade, as well as a recovery in tea sales. The Foods category grew by 18%, thanks to strong demand for yogurt and tomato sauce, while Liquid Milks saw a modest 1% growth.
Although profit before tax surged by 51% to US$2.08 million, Dairibord’s after-tax profit fell sharply to US$1.2 million from US$3.06 million in 2024. This was due to a US$0.87 million tax charge this year, compared to a significant US$1.68 million tax credit in the prior period. Furthermore, the company recorded no monetary gain in 2025, removing a one-off financial boost that had previously inflated its operating profit. To preserve cash for strategic capital projects, the board has resolved not to declare a dividend for the period.
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