Dairibord plans $10m capex

HARARE - Listed milk-processor Dairibord Holdings Limited (Dairibord) says it plans to invest $10 million in capital expenditure this year to boost operational efficiencies.

Dairibord chief executive, Anthony Mandiwanza, said the company is increasing its capital expenditure from $9,9 million spent on new product offering and line extensions in the full year to December 2014.

“We will deploy another $10 million to support products that have potential for growth, particularly the UTH milk and beverages,” he said.

Mandiwanza added that the funds will be sourced from a combination of borrowings and internal resources.

In the period under review Dairibord posted an operating profit of $1, 4 million compared to a loss of $1, 8 million in the prior year on the back of improved sales and production efficiencies.

However, revenue remained flat at $99 million despite a surge in total milk volumes by eight percent to 70, 4 million litres from 65,4 million litres in prior year.

“The mismatch between the growth in volumes sold, and revenue generated is an outcome of price adjustments to retain competitiveness, as well as a change in the product mix; affected mainly by the growth in beverages and a decline in foods,” Mandiwanza said.

 

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