At the company’s 32nd AGM held on Tuesday 30 April 2013, all resolutions tabled were passed unanimously.
The special business relating to a share buy-back was passed unanimously.
In a trading update, management reported that the operating environment remained challenging characterised by inter alia, Limited raw milk supply, intense competition from milk, High cost and erratic supply of utilities mainly water, fuel and electricity and increasing costs of key inputs(labour, utilities and materials).
There was relocation of equipment in Zimbabwe under the rationalisation programme which led to a limited product supply and increased costs.
The operating environment in Malawi is equally challenging with foreign currency shortages persisting, low donor support, year-on-year inflation closed the month of March at 37.9% as consumer prices continue to rise consequently have risen from 35% in December 2012 to at least 41% in March 2013.
The local currency in Malawi depreciated MK420:1USD in March 2013.
Revenue remained unchanged at USD 24.3m year-on-year, Volume decreased by 1% from 16.2m to 16.0m litres and raw milk intake grew by 1% from 6.5m to 6.6m litres year-on-year.
The rationalisation process is now complete as equipment and staff has been reassigned to other factories. Normal production resumed in April and the net savings of USD 1.0m.
The programmes to import heifers are on course and this should result in increased milk supply.
The group successfully commissioned an Ice cream processing in January 2013, Condiments plants in April 2013, a Yoghurt plant in April 2013.
The Groups’ rebranding exercise has been a great success with rebranded tomato sause, peanut butter and salad cream now in the market.
Analysts recommendation to investors-hold.