Published: 23 September 2025

Dairibord Holdings Limited (Dairibord) has reported a remarkable turnaround in its financial position for the half-year ended June 30, 2025, reducing its working capital deficit by 98.3% to just US$38,322, compared to a deficit of US$2.32 million in the same period last year. The improvement has bolstered liquidity, strengthened the balance sheet, and created room for investment in key capital projects.

Dairibord chairman, Nobert Chiromo, said the turnaround was driven by tighter credit controls, faster inventory turnover, and disciplined expense management. "Despite seasonal cash flow challenges during the winter period, the group achieved a substantial improvement in operating cash flows, reducing the deficit from US$2.32 million in the prior period to just US$38,322," Chiromo said.

Expenses for the period were cut by 31.22% to US$13.63 million, covering selling and distribution, administration, and other operating costs. This efficiency, coupled with strategic investments in the replacement and refurbishment of critical equipment, is expected to boost production capacity and position the group for volume growth into 2026 and beyond.

The improved cash flow position also allowed the firm to reduce its trade and other payables to US$13.3 million from US$17.77 million at the end of 2024, leaving the group with a strong liquidity ratio of US$1.50 for every dollar of short-term debt.

Chiromo also highlighted regulatory reforms as a key enabler of financial performance. "The enactment of Statutory Instrument 34 of 2025 removed penalties for businesses pricing above official exchange rates, providing greater pricing flexibility, improving alignment with market realities, and strengthening profitability prospects," he said.

Dairibord's group revenue grew by 18% to US$64.32 million, driven by strong performances in key categories: Foods (+18%), led by yoghurt and tomato sauce sales; Beverages (+28%), boosted by Pfuko, Cascade, and a recovery in tea sales; and Liquid Milks (+1%). Export volumes accounted for 8% of total sales, slightly down from 9% previously, while US-dollar denominated sales rose to 86% of total volumes from 76% in the prior period.

Profit before tax surged by 51% to US$2.08 million, but the after-tax profit declined to US$1.2 million from US$3.06 million in 2024 due to a US$0.87 million tax charge and the absence of one-off monetary gains that had bolstered the prior year's bottom line.

In light of the cash flow preservation strategy, the board has resolved not to declare a dividend for the six months ended June 30, 2025. Total assets were recorded at US$53.84 million, slightly up from US$53.49 million at the end of 2024, reflecting a resilient balance sheet despite a challenging market environment.

Chiromo concluded, "The group's performance reflects disciplined financial management, operational efficiency, and strategic investment. Dairibord remains well-positioned to grow volumes, strengthen profitability, and create value for stakeholders in the second half of the year."
- newsday

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