HomeBusiness DigestDZL group turnover surges 6%

DZL group turnover surges 6%

Staff Writer

DAIRIBORD Zimbabwe Ltd (DZL)’s group turnover for the six months ended June 30 has increased by 6% to $31,8 billion, the company said yesterday.

NT face=”Verdana, Arial, Helvetica, sans-serif”>However, raw milk intake volumes received declined by 27% compared to the first half of last year.

The company said the decline had to be viewed against the background of the reorganisation that was taking place through the fast-track land resettlement programme.

“The dairy farmers are highly-commended for their resilience,” DZL said.

In its unaudited interim financial results for the six months ended June 30, DZL said $1,2 billion of the $31,8 billion came from exports.

The group results included the six months figures for Dairibord Malawi Ltd, Lyons and 40% of earnings from Charhons.

“The group financial results were satisfactory under an extremely difficult economic environment characterised by runaway inflation, price controls, as well as shortages of foreign currency, fuel, materials and spares,” DZL said. “Business days were lost during stayaways while disposable incomes were greatly eroded. Raw milk supply was not sufficient to meet both domestic and export demand. The strategy to diversify into non-milk-based products significantly contributed positively to the group’s results.”

DZL said total costs declined by 14% compared to the same period last year.

As a result of various belt-tightening measures profit margins at the company firmed and attributable earnings increased by 23% to $2,6 billion, with the subsidiaries and associates performing well, together contributing 49% to group earnings.

Basic earnings per share were 831 cents compared to 677 cents during the previous period.

DZL said focus would continue on both revitalising raw milk production as well as growth of the non-milk products.

“The raw milk production project started will be consolidated, supported by a producer finance scheme,” DZL said. “At the same time new non-milk products will be launched. The company’s cash position will make it possible to accelerate the implementation of capital projects as well as investment in working capital.”

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