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Enacy Mapakame
DELTA Corporation, Zimbabwe’s largest beverages maker reported revenue for the third quarter to December 2022 grew 44 percent compared to the same period a year ago, largely driven by strong volume performance across all segments.
The period falls within the festive season normally characterised by high spending.
Revenue grew 53 percent for the nine-month period, reflecting the volume growth and the replacement cost-based pricing, said Delta in its latest trading update.
In terms of volume performance, lager beer volume grew by 17 percent for the quarter and 18 percent for the nine months compared to the same period last year.
Sorghum beer volumes grew by 11 percent in the quarter and 12 percent in nine months.
The group recently celebrated the Chibuku brand’s 60th anniversary. In June 2022, the group launched Chibuku Super banana flavour and Delta is looking to increase supplies once packaging capacity and supply chain bottlenecks are addressed.
Soft drinks volume was up 5 percent in the quarter and 14 percent in nine months.
Despite the growth, the supply of PET packs remains constrained and would be addressed by the investment in additional capacity, which is expected in the current quarter.
The supply of returnable glass packs was affected by the delayed receipt of glass bottles and some disruptions to production operations arising from power and water outages.
Natbrew Zambia recorded 11 percent growth in volumes in nine months lifted by regional exports.
Volumes at subsidiary Afdis rose 10 percent in the third quarter and 11 percent in nine months.
During the period, the supply of ciders was constrained by a regional shortage of glass bottles.
To offset the challenge, Afdis, the producer of wines and spirits commissioned a new PET line for packaging spirits and started the fermentation of ciders.
Volumes at the United National Breweries South Africa remained flat during the quarter under review due to the disruptions of operations arising from power cuts and reduced market service by resellers and distributors in response to fuel price increases, the company said, but grew by 21 percent in nine months to December
Associate entities, Schweppes’ volumes were flat for the nine months, having been affected by the shortages of juicing fruit earlier in the year while Nampak benefited from the volume recoveries in the key beverages and other consumer sectors.
Delta’s local operations recorded significant volume growth in the proportion of forex sales.
“There was a corresponding increase in the purchases settled in foreign currency, as the economy dollarised,” said company secretary Faith Musinga in a trading update.
The product supply was stable although there were intermittent gaps arising from power and water rationing and mismatches in the demand and supply of brands and packs.
“We continued to uprate our production capabilities which are supported by the injection of glass bottles and improved asset care,” said Ms Musinga.
The installation of additional packaging plant was on schedule for commissioning in the first half of 2023.
While the economy is poised to grow, driven by agriculture and mining, the financial out-turn in the financial year 2023 may be affected by the foreign currency tax assessments arising from differences in the interpretation of the legislation on the currency of payment of certain taxes.
The group will also take advantage of available opportunities that generate demand for its products, the company said.
Online Reporter