DAIRIBORD Holdings Limited says it has completed its rationalisation programme that will see it retrenching 200 workers as part of its efforts to contain costs, a company official has said.
Report by Tarisai Mandizha.
Speaking at the company’s annual general meeting yesterday in Harare, chief executive officer Anthony Mandiwanza said the rationalisation had been completed and the equipment and staff had been reassigned to other factories.
“We intend to reduce the staff by 200 people,” Mandiwanza said.
He said in the process, the company stood to save $1 million.
“In Bulawayo and Mutare, we have moved some of the equipment and consolidated production and centralised production, whereas Harare and Chitungwiza will be the main beneficiaries of the rationalisation programme.
“The advantage of doing that is it mitigates costs because now we have the economies of scale under one roof,” Mandiwanza added.
He said despite the rationalisation process, sales would not be compromised in any way.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Mandiwanza said the group recorded a marginal revenue increase of $24 295 for the first three months of the year ending March 31 up from $24 226 in 2012 the same period. The group volumes declined to 16 046 million litres of milk for the three months to March from 16 250 in 2012.
In the period under review, raw milk intake increased to 6,6 million litres for the first quarter compared to 6,58 million litres during the same period in 2012.
He said the group had successfully completed the commissioning of the ice cream processing plant.
The company also commissioned the condiments and yoghurt plant in April and the impact of these investments, he said, would be felt in the second quarter.
“Profitability will be affected by rationalisation costs that will be recognised in the first half,” he said.
“Revenue and volumes for Q2 will be better than Q1 2013 driven by new plant and equipment and completion of the factory rationalisation process.”
Turning to operations in Malawi, Mandiwanza said the unit was affected by intensified electricity load shedding which impacted on production volumes, low raw milk quality and weakening purchasing power due to the depreciation of the Kwacha.
