Delta revenue grows 51%

DELTA Corporation Limited (DCL) has reported a 51% growth in revenue in inflation adjusted terms for the nine months to December 31, 2021, compared to the same period prior year on account of increased domestic foreign currency sales, the company said in a trading update.

In the third quarter of the company’s financial year to December 2021, DCL said revenues grew by 34%.

“This reflects the volume recovery and replacement cost-based pricing.

“The group continues to leverage on the increased access to foreign currency through domestic nostro sales to contain input costs, which allows for competitive pricing,” Delta said in a trading update for its third quarter and nine months.

The revenue growth also comes as imports suffered huge delays as a result of the COVID-19 pandemic which restricted movement across borders globally.

Since the return of the greenback in March 2020, after initially being banned in June 2019, businesses have seen an increase in foreign currency transactions.

The central bank put a 20% retention threshold on local foreign currency sales in January 2021 with Treasury, recently, forcing companies to install fiscalised tax registers some of which enable taxation in respective currency of transaction.

In a segment breakdown of its performance during the period under review, Delta’s lager beer volume grew by 6% for the quarter and 33% for the nine months compared to the same period last year.

The sorghum beer volume grew by 25% for the quarter and 50% for the nine months compared to prior year with Chibuku Super contributing 77% in the quarter.

“The sparkling beverages business registered a robust volume recovery to grow by 34% for the quarter and 62% for the nine months compared to prior year.

“This reflects market share gains driven by affordability, consistent product supply and an expanded pack and flavour offering,” Delta said.

Volumes at subsidiary African Distillers grew by 32% for the quarter and 48% for the nine months, driven by improved supply of ciders and other locally-produced brands on the back of better access to imported inputs.-newsday