DAIRIBORD Zimbabwe Limited (DZL) says it is in the “initial phase of realising the benefits of restructuring” and is looking forward to expand to countries like the Democratic Republic of Congo, Namibia, Swaziland and Tanzania.
BY MTHANDAZO NYONI
The milk processor, which recorded an operating loss of $3,9 million in 2016, posted an operating profit of $4,1 million in the year to December 31, 2017.
Dairibord brand manager-beverages, Osten Mungofa told NewsDay in an interview that the milk processor was now back to profitability.
“In terms of performance, we made a profit and the significance of the profit is that we were coming from a loss making position. So it was good news for the market and for ourselves and I would like to confirm that going forward, it will be the trend,” he said.
In terms of productivity, Mungofa said they were improving, “as you realise that we had some restructuring, which saw the Lyons products combining with the Dairibord Zimbabwe Private Limited to become one company effectively going to the market”.
“So we realised so many cost savings which largely contributed to our profitability. So, we are actually in the initial phase of realising the benefits of restructuring. But so far, it has paid dividends,” he said.
Mungofa said the company had been able to fulfil market demand locally and in the region.
The company has presence in South Africa, Botswana, Mozambique and Zambia.
In Malawi, its subsidiary reported an operating loss of $550 000 in the year to December 31, 2017.
“We want to expand even to much more countries like the DRC, Namibia, Swaziland and Tanzania. There are lots of opportunities there,” he said.
In the financial year to December 2017, the group overturned its previous loss after a 152% increase in net profit to $1,3 million from a $5,4 million loss in the prior year, buoyed by volumes growth and restructuring exercises.
Revenue for the year improved 10% to $103 million on volumes growth due to firming product demand.