Dairibord stops production at Byo, Mutare plants

ZIMBABWE Stock Exchange-listed manufacturing concern, Dairibord Holdings (DH), has stopped production at its Bulawayo and Mutare plants as the group rationalises operations to increase profit margins.

Report by Bernard Mpofu

DH profit after tax for the year ending December 31 2012, remained flat, year-on- year, at $7 million weighed down by operations in Malawi and high operating costs in Zimbabwe.

Basic earnings per share marginally rose to 1,98 cents from 1,97.

The board also declared a dividend with a dividend cover of 4,42 times.

DH chief executive officer Anthony Mandiwanza said management will this year implement several measures to improve operating efficiencies.

He said the rationalisation exercise was expected to be completed by June. The trimming down of operations, Mandiwanza said, will reduce the number of processing plants to eight from 10, while staff levels will also be down 12% to 1505 while net savings were projected at $1 million.

He said limited raw milk supply, intense competition from imports and high operating costs were some of the challenges facing the business.

Revenue was up 11% to $106, 9 million buoyed by a steady growth in milk supply.

The group’s assets as at December 31 2012 grew to $73 million from $64 million.

8 Responses to Dairibord stops production at Byo, Mutare plants

  1. Willard Mubvumbi March 22, 2013 at 3:38 pm #

    Your system is drunk. Me spammer?

  2. Willard Mubvumbi March 22, 2013 at 3:39 pm #

    Your system is drunk. Me spammer?!

  3. Willard Mubvumbi March 22, 2013 at 3:47 pm #

    Limited raw milk supply- get more farms to keep milk producing cows. On the issue of stiff competition from imports, reduce your pdts prices. On the issue of high operating costs, break your org into small business units.

  4. Tin March 22, 2013 at 6:16 pm #

    Tony Mandiwanza must go, he is clearly out of ideas. Reducing capacity at a time when the economy is on the brink of a boom, furthermore he is in the Food/Beverage industry were other players are doing well, look at Innscor and Delta, clearly he has exceed his sell by date. we need fresh leadership at Dariboard, the shareholders must demand fresh leadership, we dont want stale leaders without a vision.

    Young dynamic leaders who can attract capital, expand the business, create jobs and achieve good returns for investors.

  5. chabvuta March 22, 2013 at 8:37 pm #

    There is no way they can just reduce the price of their products, for they will run the risk of incurring big losses, mind you the high production costs comes about due to the use of old machinery with high maintenance costs, high cost of utilities, and high labour costs among other things.Neither is it possible to break the organization into small units because this will obviously push operation costs upwards, instead mass production like what is happening in China will push operation costs downwards due to high economies of scale, Hello!!!What is actually needed is capital injection to acquire state of the art machinery with the latest technology, which in turn makes it possible to turn to qualitable mass production.

    • munjanja March 23, 2013 at 3:18 pm #

      You are right. You may be shocked kuti nutriplus or cascade is bottled manually-nemaoko or magama e rabroy anovharwa nemaoko, but you will see that the company has been declaring dividends for some time yet an automated plant may cost $50 000.

  6. Willard Mubvumbi March 22, 2013 at 10:25 pm #

    DAIRIBORD HAIFANIRI KUPARARD BABA. I concur with you @ chabvuta, mass production is the way forward.

  7. gandanga rehondo March 24, 2013 at 7:38 am #


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