OPERATING ENVIRONMENT
Exchange Rate & Inflation
Business continues to benefit from relative stability in the exchange rate and inflation, supporting more predictable trading and pricing decisions.
Electricity Supply
Supply has remained broadly stable, though with an increased number of fault-related outages requiring closer monitoring of backup capacity.
Capacity Utilisation
The business continues to benefit from increased production capacity commissioned over the past year, supporting sustained volume growth.
Interest Rates & Financing
Interest rates have begun to soften, a shift that makes long-term financing for capital investment more affordable.
Geopolitical Risk (Iran)
Continued tension in Iran is exerting pressure on margins, particularly through higher plastic packaging and distribution costs.
Competition & Compliance
Competitive intensity and the cost of regulatory compliance both remain elevated across the sector.
Q3 SALES VOLUME
Volume growth, year-on-year
- • Volumes continued to grow through Q3, though at a more moderate pace than H1, reflecting a normalising base rather than a change in underlying demand.
- • July growth was affected by the extended cold season, which softened beverage shelf offtake.
- • Growth has since recovered through August, and early Q3 trends point to continued positive momentum.
- • The Group’s formal Q3 trading update, including the final growth figures, will be published shortly.
CAPACITY ENHANCEMENT
2025 CAPEX: $11.2m
CAPEX EXPECTED BY YEAR-END 2026: $9m
- • Capacity enhancement projects commissioned over the past year continue to underpin volume growth.
- • Investment remains focused on relieving the specific bottlenecks that most directly limit output and efficiency.
- • Management expects the current program of capacity enhancement to continue through year-end, supporting both volume growth and cost efficiency.
OUTLOOK
The business continues on a growth trajectory into the balance of the year
- • Improved stability in inflation and the exchange rate, sustained through H1 2026, continues to support trading conditions into Q3 and beyond.
- • Volume growth continues, moderating from H1’s pace but remaining positive, with the Group’s Q3 trading update to follow shortly.
- • Cost discipline and a stable, competitively priced local raw milk supply remain key priorities.
- • Digital transformation continues as a strategic focus to diversify revenue streams and increase foreign currency earnings.
- • The Group remains alert to the risks and cost pressures presented by geopolitical headwinds in the Middle East, and to the forecast El Niño weather risk — with resilience-building action already underway on both fronts.