Chronicle Editor
Sikhulekelani Moyo, Business Reporter
LISTED beverages producer, Delta Corporation Limited, achieved 160 percent revenue growth for the year ended 31 March 2022 spurred by a rebound in economic activity and easing of Covid-19 lockdown measures.
In a financial statement for the period, the giant beverages maker said it registered volume growth in all its units.
“In historic cost terms, the group recorded revenue of ZW$86,5 billion reflecting a growth of 160 percent over prior year compared to average inflation of 83 percent,” said the company.
“Over 50 percent of the revenue in Zimbabwe was in foreign currency enabling better availability of imported inputs supply.
“Lager beer volume for the year grew by 38 percent compared to prior year.
This is attributed to consistent product supply with respect to both brand and pack.”
Other units where the group recorded volume growth include sorghum beer segment, which grew by 43 percent for the year on improved product supply while sparkling beverages volume grew by 65 percent.
African Distillers Limited (Afdis) recorded a 37 percent increase in volumes compared to prior year driven by a strong market pull and better product supply.
“Schweppes Holdings Africa Limited, beverage volume grew by 22 percent over prior year, driven by improved product supply and market recovery of the minute maid Juice drinks, which were not available in the previous period,” said Delta.
“Juice shortages have resulted in the market under supply of Mazoe Orange Crush, the mainstay of the business.”
The group also recorded earnings before interest and tax (EBIT) of ZW$25,4 billion, which is 37 percent above prior year in inflation-adjusted terms.
“The growth in real terms is attributed to volume recovery, replacement cost-based pricing and ongoing cost management measures,” said the group.
Delta Beverages launched a new brand, Sable Lager in March this year to expand its mainstream offerings and offer consumers a choice of an easy-drinking lager.
However, the last quarter of the year was affected by the shortages of glass bottles for ciders resulting in product shortages, especially the Hunters brand.
The wine category was adversely affected by limited trading in the on-premise consumption channel during hard lockdowns.
The group hoped the business would benefit from the expansion of sales channels and the local production of some of its key product lines.
“To address market supply-demand, the group said a new packaging plant is scheduled for installation in early 2023.
— @SikhulekelaniM1
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