Delta breaks revenue records

Vuyisile Mlilo, Business Reporter

DELTA Corporation, a major beverage company in Zimbabwe, has achieved a historic milestone by surpassing ZW$1 trillion in revenue, which has been attributed to its strategic capital investments which are pivotal in driving growth across all sectors of its operations.

The company witnessed a surge of 17 percent in sparkling beverages, and sorghum beer, recorded a four percent increase.

This growth has underscored the company’s ability to adapt to changing consumer preferences and market dynamics.

In a letter accompanying the company’s half-year financial results, to shareholders Delta board chairperson, Mr Sternford Moyo attributed the fiscal growth to the performance of its beers.

“Lager beer recorded improved volume performance throughout the year with a growth of 17 percent compared to prior year, achieving a record volume of 2,2 million hectolitres. The category benefited from the injection of returnable glass bottles and the improved plant performance.

“Packaging capacity remains limited, resulting in mismatches of demand and supply of brands and packs. The disruptions in the supply of returnable bottles and cans affecting the region are improving which will support one way convenience packs.

The business continues to focus on improving service and increasing consumer facing activities,” said Mr Moyo.

He further noted that the impressive performance was highlighted by substantial growth in the volume of sparkling beverages, which surged by 17 percent, and sorghum beer, which recorded a four percent increase.

“This growth has underscored the company’s ability to adapt to changing consumer preferences and market dynamics. The sorghum beer volume in Zimbabwe, the Chibuku brand celebrated its 60th anniversary, grew by nine percent for the year.

“The new Chibuku Super plant at the Harare Brewery was commissioned at the end of September and will contribute to volume in the second-half of next year. This investment will assist in closing the supply gaps in both the domestic and regional markets,” said Mr Moyo.

Notably, Delta’s remarkable volume growth has extended beyond the borders of Zimbabwe. In South Africa, the company’s breweries experienced a steady two percent growth in volumes, demonstrating its resilience and competitiveness in the regional market.

“At Natbrew Zambia, the positive trend of volume recovery persisted, leading to an outstanding growth rate of 67 percent,” he said.

In addition to its strong performance in the alcoholic beverage sector, Delta’s subsidiary Afdis witnessed noteworthy volume growth of 10 percent in its wines and spirits division, surpassing the previous year’s performance.

Meanwhile, Schweppes, another subsidiary of Delta Corporation, achieved a growth of seven percent compared to the previous year during the six-month period. This growth has further solidified Delta’s position as a leading player in the non-alcoholic beverages segment, showcasing its diverse and robust portfolio of products.

“Group revenue increased by 60 percent to $537 billion in inflation adjusted terms, reflecting the volume gains across business units and the replacement cost-based pricing. Earnings before interest and tax (EBIT) grew by 29 percent to $99,79 billion which indicates the benefits of higher throughput and focused cost management,” said Mr Moyo.

The Group’s revenue witnessed a significant increase of 164 percent in Zimbabwe dollar terms and nine percent in US dollar terms, with foreign currency sales exceeding 80 percent.

Additionally, earnings before interest and tax (EBIT) experienced a substantial growth of 153 percent to $408 billion in inflation-adjusted terms, reflecting an estimated 10 percent growth in US dollar terms.

This positive performance translated into a Profit after Tax (PAT) of $338,78 billion, a significant increase from $65 billion during the same period last year.