Chairman’s Statement
OPERATING ENVIRONMENT
The economy recorded growth supported by improved agricultural output, stronger mining performance and continued resilience in the services sector, resulting in improved business confidence.
Authorities maintained tight fiscal and monetary policies aimed at stabilising the Zimbabwe Gold (ZWG) currency introduced in 2024. These policy interventions contributed to a significant moderation in inflation and improved exchange rate stability during the year. Inflation declined sharply during 2025, providing a more predictable environment for business planning and pricing strategies.
Despite these positive developments, the operating environment remained challenging for the formal manufacturing and retail sectors. Rigorous regulatory and compliance frameworks, cost pressures, grey imports and altering consumer behaviours and demand patterns affected the fast-moving consumer goods sector.
GROUP PERFORMANCE
Raw Milk
The national dairy sector continued to show encouraging signs of recovery and growth. National raw milk production reached 121.8 million litres, representing a 6.2% annual increase (Dairy Services Unit under the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development).
During the same period, the Group processed 42.5 million litres of raw milk, translating to an estimated 35% share of the formal milk processing market. This performance underscores the Group’s continued commitment to supporting the local dairy value chain and strengthening partnerships with milk producers.
Sales Volume and Revenue
The Group delivered a commendable performance, recording consolidated volume growth of 12% for the year under review.
The Beverages category achieved an impressive 17% year-on-year growth. Key beverage brands – Pfuko maheu, Cascade, Quench, Quickbrew tea – performed strongly, with Natural Joy juice drink recording a robust 39% growth.
The Foods category also recorded a 17% increase in sales volume, driven by strong demand for drinking yoghurt and ice cream products. The Rabroy condiments range also experienced enhanced performance.
Performance in the Liquid Milks category was subdued, with a volume decline of 5%, as a result of downtime at the Chipinge plant during commissioning of the Steri Milk plant.
Sustained domestic demand continued to outpace available supply, compelling the Group to strategically prioritise the domestic market in its sales allocation. As a consequence, export sales volume contracted by 7%, declining from 8.7 million litres to 8.1 million litres over the period.
Group revenue increased by 8% to US$137.42 million, reflecting continued strong business momentum. Volume sold in United States Dollars increased to 96% of total volume, up from 83% recorded in the corresponding prior-year period.