Dairibord interims results

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Dairibord Holdings reported its results for the half year ended June 30, 2017 showing reduced losses from what was recorded prior year comparative. The food and beverages company reported a loss of $845,313 for the period under review, down 55.45 percent from a loss of $1,897,500 reported prior year comparative. In a statement accompanying the results, Chairman Leonard Tsumba said initiatives to align overheads costs to revenue are beginning to bear fruit. Total overheads for the period, at $18,713 million were 8 percent below prior year period with labour costs declining by 14 percent. The results also includes restructuring costs of $0,866 million. Tsumba said the restructuring of the Group has progressed in line with plan. ‘Resultantly, EBITDA improved from $347,000, in 2016, to $2,935 million in 2017,” said Tsumba.The Group recorded a 5.13 percent growth in revenue on the back of a 4 percent growth in volumes to 37,398 million litres with Liquid Milks, Foods and Beverages increasing by 2 percent, 10 percent and 3 percent respectively. Average selling price per litre firmed to $1,15 from $1,14, a 1 percent increase on the first half of 2016 with Tsumba saying the increase in the average selling price was on account of the change in product mix driven by growth in the Foods category which have a higher selling price per litre. “In terms of key volume drivers, Pfuko grew 31% driven by new flavours that were launched in May 2016,’ said Tsumba adding that UHT milks grew by 24 percent on account of the cartonised lines.Tsumba said performance in the first quarter was constrained by bad weather while the second quarter was impacted by shortages of inputs, mainly raw milk and imported materials. Going forward, Tsumba said, the business focus will remain on consolidating the benefits of the initiatives started in the first half of the year. The company will also focus on exports to improve foreign currency generation capacity. – Business Weekly, 11 August 2017

Zimre Holdings Limited (ZHL) through its investment vehicle Stalap Investments will forge ahead and propose a rights issue, as the battle to wrestle control and recapitalise CFI operations continue. Speaking to Business Weekly, ZHL major shareholder Hamish Rudland said the rights issue will go ahead as the company badly needs recapitalization. Rudland singled out the milling businesses Agrifoods and Victoria Foods as well as Farm and City as subsidiaries that badly needed working capital. “We need to boost working capital for Farm and City ahead of the 2017/18 farming season,” said Rudland. Rudland’s comments come in the wake of news that the company did not receive a single share for its mandatory offer to minority shareholders. Due to unanticipated increases in the market price of CFI shares above the offer price, we have not received any shares on this mandatory offer,’ said CFI in a statement. As expected the mandatory offer became academic after the trading price on the ZSE of 51.03 cents as at the close of the offer on August 4, 2017 made a mockery of the mandatory offer of 22 cents. – Business Weekly, 11 August 2017

More than 150 of the 250 bakeries that used to operate have closed shop as operating conditions continue to be challenging. Lack of working capital, high production costs and antiquated equipment is also making it increasingly difficult for the businesses. Only 100 bakeries are still standing. The industry is controlled by three giants – Lobels, Bakers Inn and Proton – controlling 95 percent of the market, while smaller bakeries control the remainder. National Bakers Association (NBAZ) president Ngoni Mazango, who is also managing director for Bakers Inn, said although the trend is worrying, funding initiatives being proposed by government to small companies might be helpful. The industry, which has an installed capacity of 1.8 mln loaves a day, he said, is operating between 50 to 55% – The Herald, 11 August 2017

Industry and Commerce minister Mike Bimha says he will justify the imposition of import restrictions when he meets his Sadc counterparts next week, adding that the affected countries should not cry foul. Speaking at the launch of National Bakeries Association of Zimbabwe Market Assessment Survey yesterday in Harare, Bimha said at the upcoming committee meetings with his Sadc counterparts SI64 of 2916 was set to feature prominently. – NewsDay, 11 August 2017

Zimbabwean farmers sold 184.5 mln kg of the nation’s top export earner tobacco by day 99 of the selling season, which is 7.3% lower compared to 199.1 mln kg received in prior year, official data showed. Statistics from industry regulator Tobacco Industry and Marketing Board showed that farmers had sold tobacco worth $547.5 mln – which is 6.6% lower than the same period last season – at the country’s auctions and to official buyers since the selling season started on March 15. – Daily News, 11 August 2017

By |August 11th, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.