Dairibord Holdings (Dairibord) says it is intensifying its regional footprint, deploying a combination of toll manufacturing partnerships and targeted market expansion to diversify its revenue streams and increase foreign currency generation.

The milk processor said regional growth remains a central pillar of its long-term corporate strategy, with expanding operations in South Africa anchoring the push.

This comes as revenue from the group’s South Africa segment grew by 38% to US$0.72 million during the half year ended June 30, 2026 from US$0.52 million, continuing to build scale in the group’s regional operations.

“Regional expansion remains a strategic focus, with continued growth in the Africa segment and the toll manufacturing model supporting efforts to diversify the group’s revenue streams and increase foreign currency earnings,” Dairibord said in its group’s latest financial statement.

Dairibord’s revenue increased by 28% to US$64.32 million in the comparative period, driven primarily by the strong volume recovery and supported by a stable pricing and currency environment.

The group’s exports declined by 30% as product was strategically redirected to meet strong domestic demand across all portfolios, ensuring sustained market availability and supporting local market growth.

The group invested US$3.87 million in capital expenditure during the period, continuing investment in production capacity across the group’s factories.

Consolidated sales volume grew by 26% to 78.3 million litres from 62 million litres in the comparative period last year, while raw milk utilisation was broadly flat at 20.4 million litres.

The groups said performance was strong across all product portfolios. Beverages continue to be the group’s largest volume contributor, accounting for 67% of total volume.

The portfolio delivered a 33% year-on-year increase to 52.8 million litres from 39.6 million litres in the prior year.

All beverage lines recorded growth, with Quench cordial achieving an exceptional 82% increase compared to the prior year.

“Strategic capital investment in capacity expansion at the Simon Mazorodze factory successfully unlocked volume growth in bottled Cascade, driving volume up by 68%,” Dairibord said.

The group said Fun n Fresh and Pfuko Maheu grew by 56% and 43% respectively, with the latter benefiting from capacity expansion at the Chitungwiza plant, which enhanced production capability and product availability.

“Foods delivered the group’s second-highest growth, with sales volume rising 30% to 7.3 million litres. The portfolio’s positive performance was underpinned by firm consumer demand for Bulk Ice Cream, Salad Cream, Yogie Drinking Yoghurt and Yummy Yoghurt, which achieved year-on-year growth of 80%, 72%, 42% and 25%, respectively,” Dairibord said.

Liquid milks grew moderately, up 8% to 18.2 million litres. The group said category expansion was constrained by raw milk supply rather than market demand.

However, Steri Milk achieved 72% year-on-year volume growth, capitalising on the added capacity from the newly commissioned Chipinge facility in December.

On the outlook, Dairibord said the improved stability in inflation and exchange rate experienced during the first half of 2026 is expected to continue into the second half of the year.

The group noted that it remains alert to the risks and cost-push pressures presented by the geopolitical headwinds in the Middle East.

“The group will continue to prioritise capacity expansion, cost discipline and a stable, competitively priced local raw milk supply through its out-grower support programs,” Dairibord said.