HARARE – ZSE-listed Delta Corporation’s revenue for the first quarter to June 30, 2018 jumped 40 percent compared to same period last year on volumes growth.
All beverage categories recorded increases in revenue which positively impacted on the bottom-line.
“The business continues record positive volume trends. All beverage categories recorded increase in revenue which has positively impacted on profitability and cashflows,” said Delta.
Lager beer volumes went up 56 percent over prior year for the quarter for matching the historical peak run rates post dollarisation.
Volumes for the sparkling beverages category rose by 23 percent over prior year for the quarter. In the sorghum beer category, the product mix shifted to Chibuku Super which grew by 28 percent to contribute 84 percent of the volume.
Recently acquired National Breweries of Zambia recorded a volume growth of 21 percent on improved product supply and competitive pricing.
Market watchers are guiding further growth in Delta’s earnings this current financial year. Measures by management to contain costs and remodel products in line with the evolving styles and market trends should result in higher sales, better margins and will be a defense measure for the beverages manufacturer.
Additionally, this is an election year which is expected to increase demand for alcohol at rallies and other gatherings during campaign processes.
The soft drinks category in particular was adversely affected by the challenges in securing raw materials, leading to extended periods of production stoppages and out of stock situations.
In Zimbabwe, the sorghum beer volume fell 5 percent due to shortages of packaging materials for the Chibuku Super, although product supply improved by end of the quarter.
Sparkling beverages take up circa 50 percent of these foreign currency requirements as the imports include the concentrate as well as packaging.