Delta Corporation forcasts revenue increase 2012

the full year to March next year.
Delta chief executive Mr Joe Mutizwa said the firm expects revenue to rise to US$558 million next year, as it works on increasing its volumes.
The beverage maker, owned 37 percent by South African brewer SABMiller, said it would spend US$67 million in the current financial year.
Delta, which set out to spend a cumulative US$200 million in the period 2009 to 2012, intends to create more capacity to meet rising demand.
“We plan to spend a cumulative US$200 million to recapitalise the business between 2009 and 2012.
“For the 2012, we expect to spend US$67 million, which is 12 percent of estimated turnover,” said Mr Mutizwa.
In full year to March this year Delta managed to rake in a total of US$481 million as the firm continues to dominate the local beer and soft drinks market.
The firm, has since dollarisation, invested heavily on new equipment to enhance operational efficiency at all its three beer and sparkling drink plants.
Delta installed US$14 million and US$12 million lager beer plants in Bulawayo and Harare respectively, while a new US$4,5 million PET packing line was also put in place at the Southerton drinks sparkling plant.
This has enabled the firm to claim back its market share and it now controls an estimated 96 percent of the alcoholic and non-alcoholic beverages market.
Delta contends there is significant room for volume growth considering that the country has comparatively lower per capita beverage consumption. The country’s biggest beer and soft drinks maker set itself a target of US$1 billion in revenue by 2014 and appears well on course to beat that.
Delta said revenue rose 45 percent last year, lifted by a 15 percent increase in beverage volumes, premium products and a marginal price increase towards the end of the previous financial year, which ended in March.
Investments in plant capacity pushed up beverage volumes during the review period, which resulted in lager volumes increasing 40 percent over 2009 and sparkling beverages rising 53 percent on the previous year.
Operating income jumped 76 percent to US$68,2 million in the last financial year after strong recovery in capacity utilisation, which raised margins.