The operating environment remained challenging characterized by high inflation and currency volatility especially in the second half of FY22. Several monetary policy interventions, particularly regarding local currency, interest rates and money supply management were enacted in response to the escalating inflationary pressures. The negative consequences of extended lead times throughout supply chains, delays in disbursements from the foreign currency auction system and increased wages exerted pressure on costs and margins. This was exacerbated by the inconsistent supply of quality water and power which negatively affected production and increased manufacturing costs. Notwithstanding the turbulent operating environment, the Group recorded positive volume growth compared to prior year. Raw milk utilized for the year came in at 28.5mn liters, 4% above 2021 and representing 34% of the total intake by processors. Dairibord retained its position as the leading milk processor in the country. Sales volumes for the period grew 3% ahead of the same period last year, with Beverages and Foods categories delivering growth of 7% and 10% respectively and Liquid Milks declining by 7%. Contribution to total volume for Liquid Milks, Beverages and Foods was 28%, 62% and 10% respectively. Domestic market sales volumes sold in US$ for the year were 50% (2021: 17%) and exports were 6% (2021: 5%) as the Group’s regional footprint continues to grow. Resultantly, in USD terms, revenue for the Group increased by 35% y/y. The growth in revenue is attributable to diversification and expansion of product portfolios, implementation of affordable pricing models and consistent review of the route-to-market strategies. These efforts were further aided by ongoing investments in increased manufacturing capacity and capabilities. However, the business experienced increased costs arising from imported inflation and pricing distortions from currency instability thus putting pressure on margins. The Board declared a final dividend of ZWL$358,000,858 from 2022 profits. The dividend translates to ZWL1 per share. The dividend will be paid on or about 31 May 2023.
