DAIRIBORD Holdings Limited (Dairibord) closed the half-year to June 30, 2025, with a 98,3% cut in its working capital deficit to US$38 322, freeing liquidity for operations, bolstering its balance sheet and funding for key capital projects.
In the comparative prior year, the dairy producer had registered a working capital deficit of US$2,32 million.
This sharp turnaround in operating cash flows, achieved despite a seasonal winter squeeze, reflects tighter credit controls and faster inventory turnover—foundations that helped the group navigate a still-volatile market and support modest profit growth.
In a statement attached to its half-year financial report for the period ended June 30, 2025, Dairibord chairman Nobert Chiromo said the group would intensify risk management and hedge strategies to mitigate exposures.
“Despite seasonal cash flow challenges during the winter period, the group achieved a substantial improvement in operating cash flows, reducing the deficit from US$2,32 million in the prior period to just US$38 322,” Chiromo said.
“Enhanced credit risk management and improved inventory turnover practices are expected to further strengthen cash flow generation in the second half.”
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Also helping reduce the working capital deficit was the firm cutting its expenses by 31,22% during the period to US$13,63 million from the prior year comparative.
These costs cover selling and distribution, administration, and other operating expenses.
Chiromo said the firm was sustaining its focus on cost containment and efficiency as well as pursuing aggressive investment in replacement and refurbishment of critical equipment “. . . aimed at boosting production capacity and positioning the group for volume growth into 2026 and beyond”.
The improved cash flow position also reduced the group’s debt, with trade and other payables recorded at US$13,3 million during the period, down from US$17,77 million recorded at the end of 2024.
This left the firm in a liquid position, having US$1,50 to every dollar of short-term debt.
Chiromo said a notable development was the enactment of Statutory Instrument 34 of 2025, which removed penalties for businesses pricing above official exchange rates.
“This reform enabled greater pricing flexibility, improved alignment with market realities, and strengthened profitability prospects. The retail sector benefitted significantly, improving supply chain stability,” he said.
Group revenue increased by 18% to US$64,32 million during the period under review from the comparative 2024 timeframe.
“Performance by category was as follows; Foods: +18%, driven by strong yoghurt and tomato sauce sales. Beverages: +28%, with exceptional performance from Pfuko and Cascade, alongside a recovery in tea due to improved availability,” Chiromo said.
“Liquid Milks: +1%, reflecting modest growth. Export volumes decreased slightly from 9% to 8% of total volumes. Group revenue, nonetheless, increased by 18% to US$64,32 million, largely on the back of volume growth. Encouragingly, US$-denominated sales rose to 86% of total volume, up from 76% in the prior period.”
Despite stronger revenues and a 51% surge in profit before tax to US$2,08 million, Dairibord’s bottom line fell sharply as the group booked a US$0,87 million tax charge versus a hefty US$1,68 million credit in 2024.
This left the group with an after-tax profit of US$1,2 million, compared to the 2024 comparative of US$3,06 million.
Crucially, the group recorded no monetary gain in 2025, compared to a substantial US$6,16 million gain in the prior period, removing a one-off boost that had previously flattered operating profit.
“In order to preserve cash flows for strategic capital expenditure, the board has resolved not to declare a dividend for the six months ended June 30, 2025,” Chiromo said.
The balance sheet remained strong as total assets were recorded at US$53,84 million compared to US$53,49 million at the end of 2024.