E-Malt.com News article: Zimbabwe: Delta Corporation records volume growth for the year ended March 31

Listed beverages manufacturer, Delta Corporation Limited has recorded volume growth across segments on the back of significant expenditure increases by the consuming public, the New Zimbabwe reported on June 3.

Presenting the group’s performance for the year ended March 31 2022, Delta chairman, Sternford Moyo, said during the period, lager beer volumes for the year grew by 38% compared to prior year, attributed to consistent product supply with respect to both brand and pack.

“There was a significant injection of new returnable glass bottles, which enabled the better utilisation of existing production capacity and the increase in the glass float allowed traders to remove the restriction to exchange bottles at point of purchase,” Moyo said.

During the period, a new brand, Sable Lager, was launched in March 2022, to expand our mainstream offerings and offer consumers a choice of an easy drinking lager.

The sorghum beer volume in Zimbabwe grew by 43% for the year on improved product supply.

“The volume at NatBrew Plc (Zambia) declined by 16% for the full year due to limited access to the market under COVID-19 restrictions and resurgence of competition from the illegal bulk beer offerings. The nascent volume recovery was dealt a blow following the hike in excise duty in January 2022.

“There are, however, concerted efforts to stabilise the business through focused product offerings and enhanced distribution strategies,” said Moyo.

Across the borders, United National Breweries South Africa benefited from the lifting of the alcohol ban to record a volume increase of 63% over prior year.

The sparkling beverages volume grew by 65% over the previous year. The business has responded positively to the ongoing initiatives to recover market share through competitive pricing, focused market execution and consistent supply of brands, flavours, and packs.

African Distillers Limited African Distillers Limited (Afdis) recorded a 37% increase in volume compared to prior year, driven by a strong market pull and better product supply.

The group recorded revenue of ZW$86, 5 billion, reflecting a growth of 160% over prior year compared to average inflation of 83%.

Over 50% of the revenue in Zimbabwe was in foreign currency, enabling better availability of imported inputs supply.

In inflation adjusted terms, the Group recorded earnings before interest and tax (EBIT) of ZW$25, 4 billion, which is 37% above prior year, attributed to the volume recovery.

“Going forward, the group is undertaking an ambitious recapitalisation programme to address the capacity gaps and improve customer service,” added Moyo.


04 June, 2022