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.