By Alois Vinga
ZIMBABWE Stock Exchange Food and dairy products processor Dairibord Zimbabwe Limited (DZL) has recorded a 50 % foreign currency earnings increase as the firm’s export strategy continues to deliver dividends.
Several manufacturers are still grappling to secure foreign exchange to supplement the gaps left behind by the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system allotments.
Such needs have prompted companies like DZL to eye foreign based markets.
The US dollar earnings growth has continued to register sustained increases since last year.
In the first half of 2019, DZL reported that foreign currency revenue surged to US$2.1 million, up from US$0.6 million realised in the comparative period in 2019.
In a trading update this week, DZL Company Secretary, Samson Punzisani said the company’s strategies continued to bear fruit towards meeting the foreign currency requirement during the year’s third quarter.
“The drive to generate foreign currency revenue and contribute towards the company’s foreign currency requirements continued to bear fruit with year to date foreign currency revenue up 50% from 2019,” he said.
Foreign currency liabilities closed the period at US$0. 771 million, including a long-term loan of US$0.302 million down 34% from US$1.161 million at the end of June 2020. The short-term liabilities were partly covered by foreign currency cash balances and expected receipts of US$0.312 million.
Sales volumes grew 32% ahead of figures recorded during the second quarter across all product categories with liquid milks, foods and beverages growing by 15%, 74% and 50% respectively.
Volumes for the quarter were 10% below the 2019 records showing a recovery compared to the 46% decline recorded in a similar period in 2020 and 2019.
“While cumulative sales volumes remained below 2019 at 26% down, the trajectory shows a recovery from the 32% decline recorded in the first half. Revenue for the quarter in inflation adjusted terms was 43% (155% in historical terms) above prior quarter,” Punzisani said.
Going forward the business is geared to exploit opportunities presented in a more stable operating environment by mitigating supply chain disruptions and taking full advantage of weather induced demand.