CONSUMER staples concern Dairibord Holdings Limited expects its US$11,82 million investment in expanded production capacity to drive volume growth in 2026, despite reporting a 17% decline in profit after tax to US$3,12 million for the year ended December 31, 2025.
The decline in net profit was largely due to an income tax charge of US$2,22 million, compared to a prior-year credit of US$559 879.
In its financial statement, Dairibord chairperson Nobert Chiromo highlighted that part of last year’s investment was prepayments for equipment pending delivery at year-end.
“Management will continue to prioritise cost management, supply chain resilience, and disciplined capital allocation to sustain operations. The board expects the 2025 investments to drive sustained volume growth in 2026 and beyond,” Chiromo said.
“The group remains committed to its property rationalisation and capital expansion initiatives to support volume growth, enhance efficiencies, and improve overall profitability.”
The capital expenditure was partly funded through US$1,19 million realised from the disposal of non-core properties, with the balance financed through borrowings, contributing to the increase in interest-bearing liabilities.
The capital expenditure programme focused on three major projects: the Steri processing and filling line, the Maheu refurbishment project, and the bottled Cascade processing and filling line — all commissioned in the last month of 2025.
Of the US$11,82 million spent, US$10,71 million of plant and machinery was received and commissioned, while US$1,11 million remains as prepayments for equipment.
- ‘Kadewere affected by Lyon payment delays’
- Regulators turn down DZL probe request
- Regulators turn down DZL probe request
- Loans freeze unsettles Zim firms
Keep Reading
Last year’s investments also increased total assets by nearly 26% to US$67,29 million. To enhance efficiency and reduce production disruptions from input shortages, Dairibord boosted working capital to increase raw and packaging material inventories and settled key supplier accounts on time.’
“While these measures supported sustained growth, they also increased working capital utilisation, reducing cash generated from operating activities from US$10,74 million in 2024 to US$5,08 million in 2025.”
He said the group continued to implement measures to improve inventory turnover and strengthen credit management, enhancing operating cash generation.
Current assets rose to US$32,64 million from US$30,19 million in the prior year, improving liquidity to US$1,34 for every dollar of short-term debt. Revenue for the year rose 8% to US$137,41 million.
“While profit for the year moderated to US$3,12 million from US$3,78 million in the prior year due to a higher tax charge, the group remains focused on strengthening operational efficiencies, improving margins, and positioning the business for sustainable long-term growth,” Chiromo said.
