Dairiboard Summary
Dairiboard
Tinashe Mhembere
May 18, 2012
Certified indigenous
69% Indigenous (51% threshold)
30% employees, local indigenous shareholders
31% non-indigenous includes 15% Old Mutual – will be deemed partially indigenous
5% directly foreign held
Must remain indigenous – under current rules
4.5M/month local liters produced – 7M/month is demand
12M liters was peak demand + 1M liters exports = 13M/month domestic production in 1990s
current 8 liters/person/year – was 25 liters per capita in early 90s
50% market share
2 local competitors Den Dairy (midlands) 10-12% - sell countrywide Kershelmer Dairies (Bulawayo) 6-8% - sell nationally 11 other local dairies – 10% share
South African and Zambian imports – 20-25%
Revenues:
2011 $ 95M
2012 $118M +20-24% mostly volume, hard to raise price market competitive, price sensitive consumers imports are cheaper
Operating Profit:
2011 $ 10.5M
2012 $ 13.1M +26% -- recovering
Gross Profit – 33% last year, 32% in 2012 % Total Costs: Milk 20% Sugar ~5% Powdered Milk 5% (15% of total milk consumption) Packaging 26% (PET, HTPE, paper for secondary packaging) Labor 20% (9-10% per year inflation; lots of catch-up) Distribution Costs 5% Power, Utilities 8% Head Office 4% Other Admin 7% (insurance, occupancy, rent)
Own all facilities except HQ office 7 dairies – operating 6 right now 1.7M liters/month processed fluid milk
– 25M liters/month is capacity
- only running at 8-10% of installed capacity, but some not available –
- running 35% of fluid milk available capacity;
- running 70% of value added capacity 2.2M liter/month including reconstitution
Not just milk – into cheeses, milk, juices, tea, condiments, peanut butter, water
Milk only 35%
Foods 32% mostly cheese, yoghurt, ice cream, tomatoe sauces
Beverages 33%
Big problem is shortage of milk * milk development * importing pregnant heifers
Tinashe Mhembere
May 18, 2012
Certified indigenous
69% Indigenous (51% threshold)
30% employees, local indigenous shareholders
31% non-indigenous includes 15% Old Mutual – will be deemed partially indigenous
5% directly foreign held
Must remain indigenous – under current rules
4.5M/month local liters produced – 7M/month is demand
12M liters was peak demand + 1M liters exports = 13M/month domestic production in 1990s
current 8 liters/person/year – was 25 liters per capita in early 90s
50% market share
2 local competitors Den Dairy (midlands) 10-12% - sell countrywide Kershelmer Dairies (Bulawayo) 6-8% - sell nationally 11 other local dairies – 10% share
South African and Zambian imports – 20-25%
Revenues:
2011 $ 95M
2012 $118M +20-24% mostly volume, hard to raise price market competitive, price sensitive consumers imports are cheaper
Operating Profit:
2011 $ 10.5M
2012 $ 13.1M +26% -- recovering
Gross Profit – 33% last year, 32% in 2012 % Total Costs: Milk 20% Sugar ~5% Powdered Milk 5% (15% of total milk consumption) Packaging 26% (PET, HTPE, paper for secondary packaging) Labor 20% (9-10% per year inflation; lots of catch-up) Distribution Costs 5% Power, Utilities 8% Head Office 4% Other Admin 7% (insurance, occupancy, rent)
Own all facilities except HQ office 7 dairies – operating 6 right now 1.7M liters/month processed fluid milk
– 25M liters/month is capacity
- only running at 8-10% of installed capacity, but some not available –
- running 35% of fluid milk available capacity;
- running 70% of value added capacity 2.2M liter/month including reconstitution
Not just milk – into cheeses, milk, juices, tea, condiments, peanut butter, water
Milk only 35%
Foods 32% mostly cheese, yoghurt, ice cream, tomatoe sauces
Beverages 33%
Big problem is shortage of milk * milk development * importing pregnant heifers