Dairibord Holdings Limited reported a robust set of interim results for the six months ended 30 June 2026, underpinned by improved macroeconomic stability, strong volume recovery, and disciplined cost management. The company declared an interim dividend of US$773,723, equivalent to 0.22 US cents per share, payable on 21 September 2026.
Revenue increased by 28% to US$82.56 million from US$64.32 million in the prior period, driven by a 26% rise in consolidated sales volumes to 78.3 million litres. Volume growth was broad-based. The Beverages portfolio, which accounts for 67% of total volume, grew 33% to 52.8 million litres, led by an 82% increase in Quench cordial and a 68% jump in bottled Cascade following capacity expansion at the Simon Mazorodze plant. Foods was the second-fastest growing category with volumes up 30%, supported by strong demand for Bulk Ice Cream, Salad Cream and yoghurt products. Liquid Milks grew 8% to 18.2 million litres, constrained by raw milk supply rather than demand, while exports declined 30% as product was redirected to the domestic market.
Gross profit rose 37% to US$21.69 million, benefiting from higher volumes and tight management of input costs. Operating profit more than doubled to US$5.54 million from US$2.76 million, with selling and distribution costs rising 16% and administration costs up 35%. Finance costs increased to US$1.15 million due to higher borrowings to fund capital expenditure and working capital. Profit before tax more than doubled to US$4.40 million, and profit for the period grew 169% to US$3.25 million. Basic earnings per share rose to 0.91 US cents from 0.34 US cents. EBITDA increased 78% to US$7.64 million.
The balance sheet strengthened, with total assets up 11% to US$75.03 million and total equity up 9% to US$31.81 million compared to 31 December 2025. Net cash generated from operating activities improved significantly to US$4.38 million from an outflow of US$38,322 last year. Cash and cash equivalents closed at US$4.01 million. The Group invested US$3.87 million in capital expenditure and prepayments rose as the business secured critical raw and packaging materials. Interest-bearing borrowings stood at US$13.83 million.
In recognition of the company’s performance and commitment to shareholder value, a dividend of 0.22 US cents per share was declared. The payment date for the dividend was set as 21 September 2026.
The company noted that the operating environment was considerably more stable than the comparative period. Annual ZWG inflation moderated to single digits, averaging around 4%, while the official exchange rate remained steady. Firm mineral prices, tobacco liquidity and diaspora remittances supported consumer demand. The company navigated cost pressures from global shipping disruptions, sugar tax, utility challenges and funding costs.
Looking ahead, Dairibord expects the improved inflation and exchange rate stability to continue supporting trading into the second half. The company is set to prioritise capacity expansion, cost discipline, and support for local raw milk supply through out-grower programmes. Regional expansion in South Africa and toll manufacturing remain strategic to diversify revenue and grow foreign currency earnings.
The company advised shareholders that subsequent to 30 June 2026, the Company received notice from three shareholders advising that their aggregate shareholding exceeds 51%. They further advised of negotiations with an unnamed third party regarding a potential acquisition of a controlling block. This is a non-adjusting event and the financial impact cannot yet be quantified.
