Zimbabwe’s business operating environment is worse than anticipated at beginning of year, Dairibord Group Chief Executive, Anthony Mandiwanza says.
The CE says this at a time when the year-on-year inflation ended at 76% while food and non-alcoholic beverages was at 93%.
“Inflation continues to rise impacting consumer purchasing power and aggregate demand,” Mandiwanza said.
“Supply of water and electricity is worsening affecting operations and costs.”
The Dairibord CE also says that the group’s overall performance was not spared by headwinds in the operating environment.
“Volume growth was trending positively but sustainability going forward is threatened by erratic supply of inputs,” Mandiwqanza said.
“Margins continue to be squeezed by increasing costs vs limited ability to adjust selling prices”
“Raw milk intake is ahead of prior year enabling import substitution. Share of national milk production remains high at 39%,” Mandiwanza went on.
Although the operating environment is still challenging, Dairibord predict a milk intake growth 20% in the first half.
Sales volume growth is expected to grow by 6% in the half year.
The foreign currency revenue is also expected to be at US$2.6 million up from US$0.6 million got in 2018 the same period.
Dairibord C. E. also said projections for the full year are difficult given the volatility in the market.