GROUP CHIEF EXECUTIVE’S REVIEW OF OPERATIONS
OPERATING ENVIRONMENT
The operating environment continued to present considerable difficulties throughout the year, driven largely by a tight monetary policy, new tax introductions, limited liquidity, inflation, and escalating cost pressures. Frequent utility disruptions further escalated operating expenses as the business relied on more expensive alternatives for power and water.
Furthermore, sustained pricing inconsistencies placed substantial pressure on the formal retail channel, affecting the performance of some lines particularly those requiring cold chain. The underperformance of retail also required a strategic reorientation of the Group’s route to market strategy given the increase in sales volume.
PERFORMANCE OVERVIEW
Despite a backdrop of challenging economic and regulatory conditions, the Group’s volume performance improved compared to the previous year.
Consolidated sales volume experienced a 10% year-on-year growth, culminating in a total of 118 million litres. This performance reflects the continued positive momentum established throughout the preceding fiscal year. The Liquid Milks and Foods categories served as principal drivers of this growth, registering volume increments of 20% and 47% respectively compared to the prior period.
The Company’s revenue grew 18% to US$126.8 million. This notable financial performance is attributed to the growth in sales volume, reflecting heightened market demand and successful sales initiatives.
The sustained generation of foreign currency revenue remained a critical strategic imperative for the Group throughout the reporting period. The Group achieved a growth in foreign currency revenue, which constituted 83% of the total revenue portfolio. This represents a 4% year-on-year growth, exceeding the prior period’s contribution of 79%.
The Foods portfolio exhibited a robust 47% year-on-year sales volume growth
Ms. Mercy R. Ndoro
(Group Chief Executive)