Dairibord Holdings Limited posted strong first quarter 2026 growth as recent investments in production capacity boosted volumes across its core product lines, despite mounting cost pressures linked to global instability and local utility shortages.
In its trading update for the period, the group reported a 26 percent increase in sales volumes and revenue, underlining resilient consumer demand and improved product availability across the beverages, liquid milk, and foods segments.
Revenue for the quarter rose to US$39.4 million, also reflecting a 26 percent increase from the comparable period last year.
The company said the operating environment was marked by “sustained economic resilience and improving business confidence,” supported by relative stability in the Zimbabwe Gold (ZWG) currency and lower inflation compared to the previous year.
Management credited fiscal and monetary policy measures for helping stabilise the local currency, although tight liquidity conditions continued to weigh on consumer spending.
“Fiscal and monetary policy measures contributed to the stabilisation of the Zimbabwe Gold (ZWG), resulting in a comparatively low-inflation environment versus the prior year period,” the company said.
However, the group noted that constrained liquidity in the local currency reinforced the dominance of United States dollar-denominated transactions across the economy.
Dairibord’s growth was driven by double-digit expansion across all major product categories. The commissioning of the Chipinge Steri plant in December 2025 helped liquid milk volumes rise by 15percent, while capital expenditure in bottled Cascade products and Pfuko maheu supported a 29percent increase in beverage sales volumes.
The foods segment recorded the strongest growth, climbing 31percent during the quarter as yoghurt demand continued to strengthen.
“This performance reflects the Group’s strategic focus on capacity expansion and optimisation of its route-to-market initiatives,” the company said.
Beverages remained the company’s dominant category, accounting for 67percent of total product mix volumes, followed by liquid milks at 24percent and foods at nine percent.
Despite the robust domestic performance, export volumes declined 40percent year-on-year as the company prioritised satisfying increased local demand.
The trading update also highlighted persistent operational challenges facing Zimbabwean manufacturers.
Dairibord said unreliable electricity supplies forced greater dependence on alternative energy sources, while some production facilities incurred additional costs from purchasing water supplies.
“Utility supply remained unreliable during the period,” the company said, adding that electricity shortages and water procurement collectively exerted “upward pressure on operating expenses.”
The group further warned that global geopolitical tensions continued disrupting supply chains and driving volatility in fuel, packaging, and raw material costs. Longer lead times for imported inputs also complicated operations.
“Heightened geopolitical tensions, particularly in the Middle East, are expected to sustain cost pressures in the near term,” management said.
Dairibord cautioned that the highly price-sensitive consumer market limits its ability to fully pass rising costs onto customers, potentially squeezing margins in coming months.
Still, the company remains optimistic about near-term growth prospects. Management expects momentum to continue into the second quarter, supported by enhanced production capacity and improved product availability across key brands.