UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012

The Directors of Dairibord Holdings Limited are pleased to announce the Groups unaudited financial results for the six-months ended 30 June 2012.
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2012
30 June 2012 US$ 48,643,254 4,373,269 3,135,190 1,078,946 43,999,902 12.34 30 June 2011 US$ 42,494,426 3,652,115 2,262,059 186,440 38,683,344 10.93 Capital reserves US$ As at 1 January 2011 Profit for the year Other comprehensive income Dividend Purchase of interest from minorities Issue of share capital Share-based payment transactions As at 31 December 2011 Profit for the period Other comprehensive income Dividend Issue of share capital As at 30 June 2012 24,232,672 (175,315) 117,784 749,105 208,839 25,133,085 (811,718) 54,400 24,375,767 Retained earnings US$ 10,586,528 6,932,861 17,519,389 3,135,189 (1,567,812) 19,086,766 Non - controlling interests US$ 1,182,918 141,255 (80,994) (86,589) (234,679) 921,911 9,070 (375,004) (18,608) 537,369 Total equity US$ 36,002,118 7,074,116 (256,309) (86,589) (116,895) 749,105 208,839 43,574,385 3,144,259 (1,186,722) (1,586,420) 54,400 43,999,902

HIGHLIGHTS

Financial Revenue Operating profit Profit for the period attributable to owners of the parent Net cashflows from operating activities Net assets Net asset value per share (US cents)

% Increase 14% 20% 39% 479% 14% 13%

GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012

30 June 2012 US$ 31 December 2011 US$

Assets Non-current assets Property, plant and equipment Investment in an associate Intangible assets Other non-current financial assets Current assets Inventories Trade and other receivables Cash and cash equivalents Assets classified as held for sale Total assets Equity and liabilities Equity Capital reserves Retained earnings Equity attributable to owners of the parent Non controlling interest Total Equity Non-current liabilities Interest - bearing borrowings Deferred tax liability Current liabilities Trade and other payables Interest - bearing borrowings Income tax payable Liabilities directly associated with assets classified as held for sale Total liabilities Total equity and liabilities

34,997,830 840,014 1,001,868 36,839,712 14,308,131 10,405,052 632,296 25,345,479 336,457 25,681,936 62,521,648

36,335,816 247,909 833,970 994,374 38,412,069 11,854,387 11,392,711 2,254,549 25,501,647 611,038 26,112,685 64,524,754

SUPPLEMENTARY INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 2012 US$ Depreciation charge Capital expenditure Capital commitments - Authorised and contracted for - Authorised but not contracted for 1,674,721 1,538,655 7,192,064 2,095,074 5,096,990 30 June 2011 US$ 1,469,560 2,045,980 4,054,688 1,803,786 2,250,902

NOTES TO THE FINANCIAL STATEMENTS

24,375,767 19,086,766 43,462,533 537,369 43,999,902 2,388,240 3,929,895 6,318,135 8,124,635 3,600,930 478,046 12,203,611 12,203,611 18,521,746 62,521,648 25,133,085 17,519,389 42,652,474 921,911 43,574,385 1,391,854 4,265,852 5,657,706 9,816,214 4,337,245 1,125,801 15,279,260 13,403 15,292,663 20,950,369 64,524,754 Basis of preparation The financial statements are based on the statutory records that are maintained under the historical cost convention, except for property that has been measured at fair value. Significant accounting policies The accounting policies adopted are consistent with those of the previous financial year.

CHAIRMANS STATEMENT
The board is pleased to announce the financial results for the six months ended 30 June 2012. Operating environment In spite of the relatively stable economic and political environment in Zimbabwe, performance in the period under review was affected by the following: Cost and supply of utilities especially water Liquidity in the market impacting on consumer demand and cashflows Competition from imports Increasing costs of key raw materials

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2012
30 June 2012 US$ Revenue Operating profit Net finance costs Share of loss of associate Profit before tax Income tax expense Profit for the period Other comprehensive income: Other comprehensive income for the period, net of tax Total comprehensive income for the period Profit attributable to : Owners of the parent Non - controlling interest Total comprehensive income attributable to : Owners of the parent Non - controlling interests Earnings per share (cents) Basic Diluted Shares in issue Weighted average shares Weighted average shares adjusted for the effect of dilution 48,643,254 4,373,269 (160,354) 4,212,915 (1,068,655) 3,144,260 (1,186,722) 1,957,538 3,135,190 9,070 3,144,260 2,323,472 (365,934) 1,957,538 0.88 0.88 356,620,858 356,333,822 357,284,113 30 June 2011 US$ 42,494,426 3,652,115 (209,366) (125,471) 3,317,278 (1,002,068) 2,315,210 2,315,210 2,262,059 53,151 2,315,210 2,262,059 53,151 2,315,210 0.65 0.64 353,867,858 350,517,858 353,897,453

Business in Malawi continues to be affected by foreign currency shortages and restrictive retention policies. In May 2012, the Malawi Kwacha (Mk) was devalued by 49% to 250MK: 1US$, exerting pressure on costs. Year on year inflation which was at 9.8% at the end of December 2011 closed the month of June at 20.1%, eroding the purchasing power of consumers. The new policies pronounced are expected to restore donor confidence, economic stability and business viability. Performance Group revenue for the period was $48.643 million, a 14% increase compared to the same period last year. Revenue growth by product portfolio was 24% for foods, 16% for beverages and 4% for milks. Sales volume at 32.245 million litres, were 9% above the same period last year. Foods volumes grew by 14%, beverages 14% and 3% for milks. Growth in foods and beverages was driven by increased capacity from significant investments in the yoghurt, Nutriplus and Cascade equipment, all commissioned in 2011. Raw milk intake rose by 5% to 12.889 million litres, with Zimbabwe increasing by 9% and Malawi recording a 7% decrease. The Groups Milk Supply Development Unit continues to work with dairy farmers on strategies to grow raw milk production. While revenue increased by 14%, the operating profit rose by 20% to $4.373 million. Profit for the period improved by 36% on 2011 profits to $3.144 million. The exchange losses arising from the devaluation did not have a material impact on the results of the Group. The net impact was a reduction of the balance sheet by $1.187 million which is shown on the statement of comprehensive income. Investments The Groups investment in M E Charhons was sold for $1 million to Cairns Foods Limited which exercised its rights in terms of the shareholders agreement. The proceeds from the sale are being recognised on receipt in line with the sale and purchase agreement. No profit on the disposal of the investment has been recorded in the results. The Group is still in the process of disposing of Mulanje Peak Foods in Malawi. Outlook The 2012 mid-term fiscal policy review indicates stagnating economic growth and limited purchasing power for consumers. Focus will therefore be on intensifying marketing efforts, tight cost management, strategic procurement and prudent working capital management. The board is confident that the group is financially sound with a strong balance sheet, positive operating cash flows and above inflation earnings growth. Directorate Mr Timothy Chiganze retired from the Board on 28 June 2012 having served the company for 14 years, 7 of which were as Chairman. On behalf of the board I would like to thank him for his devoted and dedicated service to the company and wish him well for the future. Dividend XXXX Appreciation I express my gratitude to all the stakeholders of the company for their invaluable and continued support to keep the company growing under the current operating environment. In particular I would like to extend my appreciation to the board of directors, management and staff for their outstanding efforts.
VP12450

ABRIDGED GROUP STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2012
30 June 2012 US$ 4,212,915 1,850,258 (2,965,041) (248,565) (1,770,621) 1,078,946 (1,486,476) (52,179) 42,985 100,000 88,210 (1,307,460) 580,065 54,400 (1,579,158) (944,693) (1,173,207) (449,480) 2,256,023 633,336 30 June 2011 US$ 3,317,278 1,778,799 (3,998,507) (268,497) (701,764) 127,309 (2,045,980) 117,197 (116,895) 59,131 (1,986,547) 418,447 569,500 (86,589) 901,358 (957,880) 1,677,906 720,026

OPERATING ACTIVITIES: Profit before tax Non-cash items Working capital adjustments Finance cost Income tax paid Net cashflows from operating activities Investing activities: Acquisition of property, plant and equipment Acquisition of intangibles Proceeds from sale of property, plant and equipment Proceeds from sale of investment Additional investment in subsidiary Finance income Net cash flows used in investing activities Financing activities: Net proceeds from borrowings Proceeds from exercise of share options Dividend paid Net cashflows from financing activities Net decrease in cash and cash equivalents Effects of exchange rate changes Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of of the period

Dr L L Tsumba Chairman 7 August 2012

Directors: S. P. Bango, Dr L. L Tsumba (Chairman), S. Chindove, *T. Mabika, H. Makuwa, C. Mahembe,*A. S. Mandiwanza (Group Chief Executive), F Mungoni, *M. Ndoro, J. Sachikonye * Executive

www.dairibord.com

Unaudited Financial Statements For the Six Months Ended 30 June 2012
The Directors of Dairibord Holdings Limited are pleased to announce the Groups unaudited financial results for the six-months ended 30 June 2012.

HIGHLIGHTS
30 June 2012 US$ Financial Revenue Operating profit Profit for the period attributable to owners of the parent Net cashflows from operating activities Net assets Net asset value per share (US cents) 48,643,254 4,373,269 3,135,190 1,078,946 43,999,902 12.34 30 June 2011 US$ 42,494,426 3,652,115 2,262,059 186,440 38,683,344 10.93 % Increase 14% 20% 39% 479% 14% 13%

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2012
Capital reserves US$ As at 1 January 2011 Profit for the year Other comprehensive income Dividend Purchase of interest from minorities Issue of share capital Share-based payment transactions As at 31 December 2011 Profit for the period Other comprehensive income Dividend Issue of share capital As at 30 June 2012 24,232,672 (175,315) 117,784 749,105 208,839 25,133,085 (811,718) 54,400 24,375,767 Retained earnings US$ 10,586,528 6,932,861 17,519,389 3,135,189 (1,567,812) 19,086,766 Non - controlling interests US$ 1,182,918 141,255 (80,994) (86,589) (234,679) 921,911 9,070 (375,004) (18,608) 537,369 Total equity US$ 36,002,118 7,074,116 (256,309) (86,589) (116,895) 749,105 208,839 43,574,385 3,144,259 (1,186,722) (1,586,420) 54,400 43,999,902

GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012

30 June 2012 US$ Assets Non-current assets Property, plant and equipment Investment in an associate Intangible assets Other non-current financial assets Current assets Inventories Trade and other receivables Cash and cash equivalents Assets classified as held for sale 31 December 2011 US$

34,997,830 840,014 1,001,868 36,839,712 14,308,131 10,405,052 632,296 25,345,479 336,457 25,681,936 62,521,648

36,335,816 247,909 833,970 994,374 38,412,069 11,854,387 11,392,711 2,254,549 25,501,647 611,038 26,112,685 64,524,754

SUPPLEMENTARY INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 2012 US$ Depreciation charge Capital expenditure Capital commitments - Authorised and contracted for - Authorised but not contracted for NOTES TO THE FINANCIAL STATEMENTS 1,674,721 1,538,655 7,192,064 2,095,074 5,096,990 30 June 2011 US$ 1,469,560 2,045,980 4,054,688 1,803,786 2,250,902

Total assets Equity and liabilities Equity Capital reserves Retained earnings Equity attributable to owners of the parent Non controlling interest Total Equity Non-current liabilities Interest - bearing borrowings Deferred tax liability Current liabilities Trade and other payables Interest - bearing borrowings Income tax payable Liabilities directly associated with assets classified as held for sale Total liabilities Total equity and liabilities

24,375,767 19,086,766 43,462,533 537,369 43,999,902

25,133,085 17,519,389 42,652,474 921,911 43,574,385

Basis of preparation The financial statements are based on the statutory records that are maintained under the historical cost convention, except for property that has been measured at fair value. Significant accounting policies The accounting policies adopted are consistent with those of the previous financial year.

2,388,240 3,929,895 6,318,135 8,124,635 3,600,930 478,046 12,203,611 12,203,611 18,521,746 62,521,648

1,391,854 4,265,852 5,657,706 9,816,214 4,337,245 1,125,801 15,279,260 13,403 15,292,663 20,950,369 64,524,754

CHAIRMANS STATEMENT The board is pleased to announce the financial results for the six months ended 30 June 2012. Operating environment In spite of the relatively stable economic and political environment in Zimbabwe, performance in the period under review was affected by the following: Cost and supply of utilities especially water Liquidity in the market impacting on consumer demand and cashflows Competition from imports Increasing costs of key raw materials

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2012
30 June 2012 US$ Revenue Operating profit Net finance costs Share of loss of associate Profit before tax Income tax expense Profit for the period Other comprehensive income: Other comprehensive income for the period, net of tax Total comprehensive income for the period Profit attributable to : Owners of the parent Non - controlling interest 48,643,254 4,373,269 (160,354) 4,212,915 (1,068,655) 3,144,260 (1,186,722) 1,957,538 30 June 2011 US$ 42,494,426 3,652,115 (209,366) (125,471) 3,317,278 (1,002,068) 2,315,210 2,315,210

Business in Malawi continues to be affected by foreign currency shortages and restrictive retention policies. In May 2012, the Malawi Kwacha (Mk) was devalued by 49% to 250MK: 1US$, exerting pressure on costs. Year on year inflation which was at 9.8% at the end of December 2011 closed the month of June at 20.1%, eroding the purchasing power of consumers. The new policies pronounced are expected to restore donor confidence, economic stability and business viability. Performance Group revenue for the period was $48.643 million, a 14% increase compared to the same period last year. Revenue growth by product portfolio was 24% for foods, 16% for beverages and 4% for milks. Sales volume at 32.245 million litres, were 9% above the same period last year. Foods volumes grew by 14%, beverages 14% and 3% for milks. Growth in foods and beverages was driven by increased capacity from significant investments in the yoghurt, Nutriplus and Cascade equipment, all commissioned in 2011. Raw milk intake rose by 5% to 12.889 million litres, with Zimbabwe increasing by 9% and Malawi recording a 7% decrease. The Groups Milk Supply Development Unit continues to work with dairy farmers on strategies to grow raw milk production. While revenue increased by 14%, the operating profit rose by 20% to $4.373 million. Profit for the period improved by 36% on 2011 profits to $3.144 million. The exchange losses arising from the devaluation did not have a material impact on the results of the Group. The net impact was a reduction of the balance sheet by $1.187 million which is shown on the statement of comprehensive income. Investments The Groups investment in M E Charhons was sold for $1 million to Cairns Foods Limited which exercised its rights in terms of the shareholders agreement. The proceeds from the sale are being recognised on receipt in line with the sale and purchase agreement. No profit on the disposal of the investment has been recorded in the results. The Group is still in the process of disposing of Mulanje Peak Foods in Malawi. Outlook The 2012 mid-term fiscal policy review indicates stagnating economic growth and limited purchasing power for consumers. Focus will therefore be on intensifying marketing efforts, tight cost management, strategic procurement and prudent working capital management. The board is confident that the group is financially sound with a strong balance sheet, positive operating cash flows and above inflation earnings growth. Directorate Mr Timothy Chiganze retired from the Board on 28 June 2012 having served the company for 14 years, 7 of which were as Chairman. On behalf of the board I would like to thank him for his devoted and dedicated service to the company and wish him well for the future. Dividend XXXX

3,135,190 9,070 3,144,260

2,262,059 53,151 2,315,210

Total comprehensive income attributable to : Owners of the parent Non - controlling interests

2,323,472 (365,934) 1,957,538

2,262,059 53,151 2,315,210

Earnings per share (cents) Basic Diluted Shares in issue Weighted average shares Weighted average shares adjusted for the effect of dilution

0.88 0.88 356,620,858 356,333,822 357,284,113

0.65 0.64 353,867,858 350,517,858 353,897,453

ABRIDGED GROUP STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2012
30 June 2012 US$ OPERATING ACTIVITIES: Profit before tax Non-cash items Working capital adjustments Finance cost Income tax paid Net cashflows from operating activities Investing activities: Acquisition of property, plant and equipment Acquisition of intangibles Proceeds from sale of property, plant and equipment Proceeds from sale of investment Additional investment in subsidiary Finance income Net cash flows used in investing activities Financing activities: Net proceeds from borrowings Proceeds from exercise of share options Dividend paid Net cashflows from financing activities Net decrease in cash and cash equivalents Effects of exchange rate changes Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of of the period 4,212,915 1,850,258 (2,965,041) (248,565) (1,770,621) 1,078,946 30 June 2011 US$ 3,317,278 1,778,799 (3,998,507) (268,497) (701,764) 127,309

Appreciation I express my gratitude to all the stakeholders of the company for their invaluable and continued support to keep the company growing under the current operating environment. In particular I would like to extend my appreciation to the board of directors, management and staff for their outstanding efforts.

(1,486,476) (52,179) 42,985 100,000 88,210 (1,307,460)

(2,045,980) 117,197 (116,895) 59,131 (1,986,547)

Dr L L Tsumba Chairman 7 August 2012

580,065 54,400 (1,579,158) (944,693) (1,173,207) (449,480) 2,256,023 633,336

418,447 569,500 (86,589) 901,358 (957,880) 1,677,906 720,026

Directors: S. P. Bango, Dr L. L Tsumba (Chairman), S. Chindove, *T. Mabika, H. Makuwa, C. Mahembe,*A. S. Mandiwanza (Group Chief Executive), F Mungoni, *M. Ndoro, J. Sachikonye

* Executive

VP12450