CAPE TOWN: Dairibord Holdings revenue for the four months to April 2016 declined 6 percent due to lower average selling prices despite volumes increasing 6 percent on prior year same period comparable. Chief executive Anthony Mandiwanza in a trading update at the company’s annual general meeting yesterday said volume growth at 6 percent was in line with projections while revenue was largely impacted by average selling prices which dropped from $1,24 to $1,11.
He said that in terms of volume, maheu was growing in impressive fashion, and Mr Mandiwanza applauded the Government for addressing unnecessary imports of the product into the country.
“Indeed, it is an opportunity for us to grow in that space. We are in the process of commissioning additional capacity, which will double what we had and the benefit will be felt as we roll into the second half,” he said. He said new capacity for cartonised milk, Chimombe, has been created and the group has shifted from toll manufacturing, which was being done in South Africa, while Dairibord struggled to meet demand for the product.
