The financial year remained difficult, with Dairibord operating under a complex and dynamic economic environment characterised by rapid devaluation of the Zimbabwe dollar, tight liquidity and unpredictable market conditions. Consumer buying power was suppressed owing to liquidity challenges in the economy.
The trading environment remained challenging in the period, characterised by an inflationary environment, and thereby impacting prices for retail commodities. Group performance was impacted by the aforementioned challenges and saw cigarette volumes slide 5% to 1.003bn sticks from the 1.054bn sticks sold in the previous comparable period.
The Reserve Bank of Zimbabwe delivered the highly anticipated 2024 Monetary Policy Statement (MPS) amidst a multi-currency system characterized by exchange rate and inflation volatility.
The month of March was characterised by a continued slowdown on the Zimbabwe Stock Exchange. Market capitalisation surged 71% in nominal terms on the bourse. Nevertheless, exchange rate movements outpaced growth of the bourse leading to a 1.25% drop m-o-m in real terms, from US$2.16bn to US$2.13bn.
The operating environment remained fragile encompassed by currency volatility and inflationary pressures. However, the period also saw the extension of the ongoing multi-currency regime to 2030. Despite challenges in the environment, the Group saw positive volumes growth across most segments.
The period under review saw a fluid and challenging environment. Price distortions persisted in the formal sector with less consumer activity recorded in that channel.
