Mr Anthony Mandiwanza
LISTED dairy foods manufacturer Dairibord Zimbabwe Holdings says overall performance for the four months to April 2017 was better than prior year mostly on the back of gains derived from the promulgation of Statutory Instrument 64 of 2016.
Briefing shareholders at the group’s annual general meeting in Harare yesterday, chief executive Mr Anthony Mandiwanza said the food industry continued to benefit from SI 64, which limits the importation of products that can be manufactured locally.
The regulatory measure was promulgated last year as a means to boost local industry as well as promote local consumption.
Mr Mandiwanza said while the operating environment remained challenging especially access to foreign currency, local industry was taking advantage of the SI 64 to improve production, enhance competitiveness and further gain market share.
“We continue to implore and engage Government to sustain the Statutory Instrument 64, which gives respite and opportunity for local production to be ramped up. We continue to take advantage of that, it is feeding into our business,” said Mr Mandiwanza.
Earlier this year, Dairibord remodelled its business to align costs and revenues. This, Mr Mandiwanza said, had started to positively impact on the group’s performance.
“We agreed on a business strategy to drive the company forward taking into account the manifested misalignment of revenues and expenditure resulting in poor out turn the previous year,” he said.
However, the first two months of the year were slow due to the incessant rains experienced across the country. As a result, turnover and volumes for the four months under review remained almost flat on prior year levels.
Selling prices remained stable in the period under review and prospects are high for an improvement.
Operating costs were trending lower than same period last year. Dairibord commissioned its UHT carton plant, which has enhanced efficiencies and production.
Management is upbeat this will further boost the group’s overall performance this financial year, coupled with benefits derived from SI64.
Earlier this year, Dairibord announced it would import 300 heifers this year, a move expected to boost the company’s raw milk production and intake which stood at 31, 293 million litres last year. — BH24.