Delta records a 163% growth in revenue
BLUE-CHIP beverages maker Delta Corporation this week reported a 163% growth in revenue in inflation adjusted terms for the first quarter to June 30, 2023 compared to the same period prior year owing to the growth in volume.
In a trading update for the first quarter, the firm said revenue in United States dollar terms grew by 10%.
The Zimbabwean entities continue to generate sufficient foreign currency through domestic sales with average collections of over 80%, which reflects the constrained Zimdollar liquidity and trading challenges affecting formal sector outlets.
The firm said focus still remains on exploiting opportunities from activities that generate aggregate demand such as the infrastructure development projects, mining activities and diaspora remittances.
“The operating environment in Zimbabwe will be impacted by the election season and the complex macro-economic factors. The recent surge in inflation and renewed currency volatility will remain key issues impacting on business performance,” the update reads in part.
“The business will benefit from the improved product supply following the commissioning of additional packaging capacity. The recovery trends in the regional entities are encouraging.
“The focus remains on exploiting opportunities from activities that generate aggregate demand such as the infrastructure development projects, mining activities and diaspora remittances.”
However, Delta said there are still headwinds in the global economy which impact on the supply, logistics and pricing of commodities and currency volatility.
In a segment breakdown of its performance during the period under review, Delta’s lager beer volume grew by 12% for the quarter although there were some gaps in product supply arising from the disruptions to supply of utilities and scheduled critical plant maintenance.
Sorghum beer volume in Zimbabwe grew by 7% for the quarter compared to prior year.
“The sparkling beverages volume grew by 11% for the quarter. The new PET packaging line was commissioned during the quarter, which has allowed the expansion of the PET offerings. There is an ongoing injection of additional glass bottles, to avail more affordable packs,” Delta said.
Volumes at subsidiary African Distillers grew by 11% for the quarter compared to prior year, driven by the ready to drink and spirits categories.
Schweppes Holdings, which is an associate entity, recorded a volume growth of 5%.
Delta has a diversified portfolio, whose interests span domestic to international brands in lager beer, traditional beer and a Coca-Cola franchised sparkling and alternative non-alcoholic beverages.
The firm has investments in associate companies whose interests span cordials and juice drinks, wines and spirits.-newsday
