Dairibord revenue growth up 17pc Sachikonye replaces Tsumba as board chair
DAIRIBORD Holdings Limited has appointed Mr Josphat Sachikonye as new board chairman replacing Dr Leonard Tsumba who retired five days ago after serving the company for the past six years.
In a statement yesterday, the board paid tribute to Dr Tsumba for his service to the company as chairman and congratulated Mr Sachikonye on his new appointment.
“Dr Tsumba retired from the board at the conclusion of the 23rd annual general meeting of the members of Dairibord Holdings on May 16. The board and management wish to thank him for his illustrious contribution during the time he served. We wish him well in his future endeavours,” read the statement.
Mr Josphat Sachikonye was elevated to the level of board chairman on May 16 from being a non-executive director on the board since 2009. He has also served as a non-executive director for several public and private sector companies such as Cottco, Cresta Group, Murowa Diamonds and Merchant Bank. Mr Sachikonye is a chartered management accountant and a holder of an Honours Degree in Accounting from the then University of Rhodesia. He also has an MBL from the University of South Africa and a Marketing Diploma from the Institute of Marketing in the United Kingdom. Mr Sachikonye was also a managing director of Rio-Zim for eight years.
The dairy and food processor’s performance in the four months to April was above the same period last year with revenue growth at 17 percent ahead of prior year. In a recent trading update to shareholders at the group’s annual general meeting, group chief executive officer, Mr Anthony Mandiwanza, said raw milk uptake was eight percent above same period last year. Overall volumes growth was also eight percent ahead of prior year comparable period. Demand was firm across all categories. Mr Mandiwanza, however, indicated that foreign currency shortages currently affecting the economy had a knock on effect on the group’s performance especially its ability to meet demand.
“There was increased competition, but demand for our products remained firm across all categories of the business. Foreign currency shortages negatively affected product supply. We experienced a gap between supply and the ability to meet demand, consequently, demand was not met,” he said.
During the period under review, the bottom-line was slightly above same period last year and management is upbeat of a strong earnings performance for the first half of the current financial year.
During the full year to December 2017, Dairibord overturned a loss position with 152 percent in net profit to $1,3 million from a $5,4 million loss in the prior year, on volumes growth and restructuring exercises. Revenue for the year improved 10 percent to $103 million on volumes growth due to a firming demand. Total volumes increased 8 percent to 89,4 million litres as the firm leveraged on improved installed capacity. Mr Mandiwanza said the group anticipated demand to remain firm for the rest of the financial year on the back of an increase in disposable incomes. During presentation of 2017 financial results recently, management also said the group would halt the heifer programme citing foreign currency shortages and adopt the artificial insemination strategy. The heifer programme has contributed 15 percent of the group’s total milk intake.
Dairibord Zimbabwe’s largest milk processor and runs four subsidiaries — Dairibord Zimbabwe Private Limited, Lyons, Dairibord Malawi (Private) Limited and NFB Logistics (Private) Limited. — @ MondelaC is