Ndoro told analysts and journalists at a DZHL’s analysts briefing in the capital on Wednesday while presenting the group’s full-year financial results-to-December last year that the group was directly out of Charhons. Ndoro said that although Charhons was a good business, it was in urgent need of capital to take it out of its loss-making position and lift capacity.
She noted, however, that the group did not have control of Charhons and a decision had been made to exit the unit.
“The board has resolved to exit the business and the decision is currently being executed,” Ndoro said.
In the year-to-December, DZHL carried a loss of US$512 362 against another loss of US$200 503, which Ndoro said showed a significant drop in operations. On the balance sheet, the group had reduced the Charhons carrying amount to US$247 000.
Presently, Charhons is operating below 20% of capacity. The company requires in excess of US$2 million for recapitalisation.
DZHL also made a decision to dispose of Mulanje Peak Foods, a 100% subsidiary of Dairibord Malawi Limited, after failing to realise real growth and profitability.
Ndoro said supply constraints had been experienced in the business.
The selling agreement was under execution, said Ndoro, adding that no loss was expected from the disposal.
In the full year-to-December, DZHL increased its shareholding in Dairibord Malawi by 8,4% to 68,4% in pursuit of a shareholder restructuring exercise.
Dairibord reported earnings of US1,97c a share from US$7,187 million. The group declared a dividend of 0,44c, a 4,5 times cover.