Delta Corporation Limited said it will commission a new 42 000-bottle per hour bottling plant by August this year in an effort to raise the company’s capacity utilisation levels.
Delta chief executive Joe Mutizwa said the new bottling plant would significantly boost the performance of the beverage giant.
“The new bottling line is expected to buttress the volume recovery and increase production in the country,” said Mutizwa.
Mutizwa said his company recorded sales revenue of $408 million for the full-year ended 31 March compared to $281 million over the same period last year.
“Increase on sales was contributed by the increase in beer volumes,” he said. “Beer volumes growth was mostly contributed by investment both in plant and glass packaging.”
Beverage volumes grew by 15% during the previous year, driven by strong lager beer and sparkling beverage demand.
Lager volumes went up 40%, sparkling beverages went up 53% whilst those of sorghum beer went down 7% compared to the same period last year.
The group recorded an increase in earnings before interest, tax, depreciation and amortisation of $81, 7 million.
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Operating profits for the group stood at $68, 236 million up from $38, 824 million, a 76% increase while revenue grew by 45%.
The improvement in operating margins rose by 370 basis points from 15, 8% to 19, 5%
“The improvement on operating margins was attributable to the increase in capacity utilisation, cost control and a product mix that favours the higher margin product lines,” said Mutizwa.
The group recorded a profit before tax of over $70 million this year up from $41, 875 million over the same period last year.
“A new 42 000-bottle per hour packaging line was commissioned at Belmont, Bulawayo factory in December to contribute to the December pick period,” said Mutizwa.
