By Ndafadza Madanha
DAIRIBORD says revenue for the first quarter was down two percent against the corresponding period FY16 owing to incessant rains that affected the country.
Giving a trading update at the company AGM, group CEO Anthony Mandiwanzira said the company had recorded improved profit margins while operating cost were trending lower than the prior year.
He said the company’s manning levels were also 10 percent down from December, with US$866 thousand spent on rationalizing costs against a budget of US$1 million.
Mandiwanzira was optimistic the reduced overheads and efficiencies driven by the restructuring of the company will reposition it to recover from its staggering US$3.9m loss last year.
He said the sustained benefits from SI64 and new capacity for the cartonised UHT milk were also growth avenues that will be exploited during the course of the year.
Mandiwanzira said the impact of SI64 could be further enhanced by availing foreign currency for the importation of critical raw materials.
Included in the US$3.9m loss in the prior year are US$2.8m impairments related to inventories, receivables and equipment.
The operating loss of 1.1m is attributable to high level of fixed overhead costs.