DHL first quarter turnover up 36%

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Dairibord Holdings Limited (DHL)’s turnover for the first quarter of this year increased by 36% from last year due to improvements in the business operating environment.

DHL chief executive officer Anthony Mandiwanza on Wednesdy said the first three months of the year had been characterised by a stable business environment and low inflation rate.

He said milk production during the first quarter improved by 33% compared to last year.

Turnover for the group stood at $20,5 million, while milk volumes increased to six million litres for the first three months of the year.

A total of 15 million litres were sold during the period under review indicating a 32% increase from the same period last year.

“A full value chain has to be addressed from milk production in which government can play a big part to produce marketable products in Zimbabwe and the region,”he said.

The country’s raw milk production is expected to increase by 15% this year.

Mandiwanza said despite the increase in the prices of sugar imports, concentrates and groundnuts, the company could not pass on the costs to the consumers as the environment was not permitting.

DHL is operating at between 35-50% capacity utilisation levels.

He said the group’s Malawi subsidiary was still secure although the economy in that country was under pressure from donors.

The company recapitalised its Malawi plant by buying new equipment and generators.

The company expects to commissiong its Nutriplus plant in Chitungwiza by the end of this month. DHL recorded a turnover of $75 million for the year ended December 31 2010 from $43,4 million in 2009.

Some of its subsidiary include Dairibord Zimbabwe Private Limited, Lyons, Dairiboard Malawi and NFB Logistics.