Chronicle Editor
Sikhulekelani Moyo, [email protected]
LISTED beverages producer, Delta Beverages has revealed that the commissioning of the Chibuku Super plant which is set to be done during the second quarter in Harare will close the supply gap for the product hence improving volumes.
In a statement accompanying the 2023 first quarter trading updates for the period ended 30 June, the company said sorghum beer volume in Zimbabwe grew by 7 percent for the quarter compared to the prior year.
“There are ongoing adjustments to the route to market in response to the challenges facing the formal retail sectors.
“The new Chibuku Super plant being installed at Harare Brewery is scheduled for commissioning during the second quarter of the current financial year. This will close the product supply gaps and contribute to the regional supply grid,” said the company secretary Ms Faith Musinga.
She also said the lager beer volume grew by 12 percent during the period under review compared to last year.
Ms Musinga said the product supply will improve following the commissioning of a new bottling line at the end of the quarter and the continued investment in returnable glass bottles.
“There were some gaps in product supply arising from the disruptions to the supply of utilities and scheduled critical plant maintenance,” she said.
“The sparkling beverages volume grew by 11 percent 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.”
Meanwhile, group revenue grew by 163 percent for the quarter in inflation-adjusted terms compared to a growth of 929 percent in historical cost terms, driven by the growth in volume.
The company said the revenue in US Dollar terms grew by 10 percent over the prior year.
“The Zimbabwean entities continue to generate sufficient foreign currency through domestic sales with average collections of over 80 percent, which reflects the constrained Zimbabwean dollar liquidity and trading challenges affecting formal sector outlets,” said Ms Musinga.
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