Vusumuzi Dube
Judith Phiri, Business Reporter
DELTA Corporation Limited revenue increased by 19 percent in US Dollar terms for the quarter third quarter ended 31 December 2023, compared to prior year.
In a business update for the period under review, the company secretary, Ms Faith Musinga said volume growth was also recorded across business units.
“Group revenue for the quarter increased by 19 percent in US Dollar terms compared to prior year and grew by 12 percent for the nine months. This reflects the volume growth across business units, with the proportion of US Dollar sales averaging above 70 percent for the year,” she said.
“Consumer spending remained buoyant, driven by stable US Dollar pricing and liquidity from mining activities, the marketing of commercial crops, government infrastructure projects and diaspora remittances. There were also benefits from the payment of year-end bonuses during the third quarter.”
She said the lager beer business has maintained the volume growth momentum and has surpassed historical monthly peak volumes to achieve a growth of 15 percent for the quarter and 14 percent for the nine months compared to prior year.
On sorghum beer, Ms Musinga said in Zimbabwe the total volume inclusive of exports grew by 3 percent for the quarter and is up 4 percent for the nine months, off a high prior year base.
“Volume, however, declined by 5 percent for the quarter in Zimbabwe as the category was impacted by the improved availability of lager beer.”
She said the volume at United National Breweries South Africa grew by 10 percent during the quarter and is up 3 percent over prior year for the nine months.
Ms Musinga said Natbrew Plc (Zambia) recorded a volume growth of 23 percent for the quarter and grew by 50 percent for the nine months.
On sparkling beverages, she said: “Volume recovery momentum persisted, registering a growth of 38 percent for the quarter and 25 percent for the nine months compared to the prior year. The volume drive is anchored on keener retail pricing and improved supply of flavours and packs.”
Ms Musinga said for wines and spirits, African Distillers (Afdis) registered a sluggish performance in the quarter with volume declining by 12 percent compared to prior year due to an increase in grey trade on key brands and reduced uptake by the formal trade partners due to account management issues and distorted pricing.
She said Schweppes Holdings Africa recorded a volume growth of 16 percent over prior year for the quarter benefiting from the commissioning of the new plant supplying bottled water and Minute Maid Juice Drinks in November 2023, while the sugar tax will result in price increases which will consequently impact the volume recovery efforts.
Ms Musinga said: “Nampak Zimbabwe Limited volumes for the quarter were 8 percent ahead of prior year across all businesses, benefitting from increased exports of paper products and the higher pull of plastic packaging from the beverages sector.”
She said in the current year they have amplified their communication on underage drinking under the Pledge 18 campaign, Make A Difference-Recycle executions and uprated the brand activations supporting sports and culture.
Bongani Ndlovu