DAIRIBORD Zimbabwe Ltd (DZL) intends to increase the stake in its subsidiary Dairibord Malawi Ltd after the government of Malawi announced plans to dispose of 40% equity in the company.
Malawi is in the process of selling its 40% stake in Dairibord Malawi.
Dairibord Zimbabwe owns a controlling 60% shareholding in the company.
DZL chief executive officer Antony Mandiwanza said while opportunities to increase their influence existed, the company was content with the current situation for strategic reasons.
“The prospects are there but for some strategic reasons we will not increase our stake,” said Mandiwanza whose company last week released results at the top end of market expectations.
Mandiwanza told businessdigest that the company was only interested in a small stake for its employees. He said DZL was interested in acquiring a small shareholding of between 5% and 10% to allocate to employees.
“The strategy is to get a small stake for the employees that side and leave the rest for other interested companies and individuals in Malawi,” Mandiwanza said.
Turning to the results for the year ended December 31, the company notched basic earnings per share of $57 courtesy of a solid performance from all subsidiaries.
Dairibord’s milk division contributed 46% to group earnings while milk sales declined by 26%.
Mandiwanza told analysts at a briefing last week that overall milk intake had eased by 31% in the period under review.
Icecream maker Lyons contributed 31% to the group despite having stagnant volumes due to milk supply constraints.
For the first time however Lyons recorded a 3% volume increase in exports.