E-Malt.com News article: Zimbabwe: Delta Corporation reports 14% increase in revenues in the quarter to December

Listed beverages manufacturer, Delta Corporation said on January, 17 revenues over the quarter to December last year rose 14 percent and 16 percent year on the back of stronger beer sales.

In a trading update, Delta, a subsidiary of South Africa-based global brewer, said lager beer volumes for the third quarter were 5 percent ahead of prior year and 7 percent up for the nine months to December.

Firming lager volumes however, contrasted with the sorghum beer volumes which eased by 10% for the quarter and 9% for the nine months.

Sorghum beer volumes are down 10 percent for the quarter and 9 percent for the nine months, a trend consistent with that for the first half of the year,” the company said.

“The impact on the business is expected to be minimal. The overall financial performance for the quarter and year to date is in line with our expectations.

“Sparkling beverages volumes are up 8 percent for the quarter and 10 percent for the nine months.”

In November last year, Delta said it had invested about $250 mln into production capacity enhancement since dollarization of the Zimbabwean economy in 2009.

"The investment has resulted in the company generating business to the tune of $1.2bn during the period (since dollarization)," chairman Canaan Dube said at the time.

The company also commissioned a $17 mln bottling line at its Harare plant in November.

The company has seen market capitalisation breach the US$1 billion mark with analysts saying this could help boost the stock market which has been subdued lately largely due to liquidity challenges.

18 January, 2013