By Ndafadza Madanha
DAIRY processor Dairibord is mulling its continued involvement with its Malawi operations following a string of poor results from the entity.
In the 2017 financial year Dairibord Malawi posted a US$551 000 loss compelling the board to reassess its options.
“The board is in the process of assessing the investment and the market will know in the next six months of its position,” said Dairibord Chief Executive Anthony Mandiwanza.
He said the review would inform the board how best to proceed but noted Malawi had a compelling business proposition.
“Malawi has population of US$18m people with lower disposable income so we can develop products for that market, we can also use the route to market approach like we have done with our sterilized milk and Udiwo. Also the structure of milk production in Malawi is different in that small scale farmers do most of the production unlike here. So there is a prima facia for business and we may need to recapitalize”.
Meanwhile Dairibord registered a 152 percent profit after tax of US$1.3m from prior year loss of US$5.4m.
Operating profit grew 204 percent to US$4.1m from a loss of US$3.8m in the prior year.
Revenue was up 10 percent to US$103 with US$3m coming from the Malawi operations.
Mandiwanza said the company margins will remain under pressure during 2018.