Delta innovation bears fruit

ZIMBABWE Stock Exchange-listed beverage entity Delta Corporation Limited recorded a 38% jump in after-tax profit to $104 million for the year ended March 31, 2013 as investments and innovation by the company bear fruit.

Report by Tarisai Mandizha

Revenues for the period under review rose 14 % to $631 million.

Speaking at the company’s analyst briefing in Harare on Wednesday, chief executive officer Pearson Gowero said Delta injected $83 million towards key projects aimed at reducing operating costs and improving efficiencies.

Gowero said total beverage volumes went up to 6,9 million while total lager volumes grew 4% led by premium brands.

“We have continued to innovate in packaging with the introduction of one-way bottles on both premium and mainstream brands on the back of improved plant capacity and increased returnable bottle float,” he said.

He said the government’s decision to increase excise duty from 40% to 45% in December 2012, to a level higher than regional averages, disrupted retail pricing which in turn slowed off-take in the last trading quarter after manufacturers were forced to increase prices.

Delta’s sparkling beverages full-year volume performance grew by 9% driven by improved product availability following the commissioning of a new PET packaging line in November 2012.

Gowero said Mahewu volumes grew by 42% due to localisation of the product and sorghum beer volumes were down 8% partly affected by the poor agriculture season and a raw material cost-induced price increase.

“We plan to drive growth by further strengthening our brands portfolio and manufacturing process capabilities while focusing on cost effectiveness to deliver sustained value to our shareholders,” he said.

The group has plans to increase lager production capacity to 3 million hectolitres (hls) if the need arise from the current 2,4 million hls.

Sparkling beverages capacity stood at 1,7 million hls and could be increased to 2,4 million hls while sorghum beer production could also be increased to 5 million hls.

Gowero said the volume performance was reflecting the slowing Gross Domestic Product growth rate, adding that electricity and water continued to be a challenge.

21 Responses to Delta innovation bears fruit

  1. Mpiya May 17, 2013 at 9:02 am #

    where did they innovate or how did they innovate, poor journalism

    • MM May 18, 2013 at 1:42 pm #

      Taura hako Mpiya, I thot I was the only one azviona…

  2. Inno May 17, 2013 at 9:44 am #

    Mpiya, innovation by the introduction of one way bottles. It’s there in black and white.

    • Zhvanga Zhviri Zhvako May 17, 2013 at 1:48 pm #

      ..as well as in packaging and increasing the returnable bottle float. That’s what happens when one reads the topic and writes their own story!

      • Chitova May 18, 2013 at 8:20 pm #

        I agree with Mpiya. These look like generic strategies that every brewer monitors, even small players like Go Beer, Simba etc kana dzichiriko. An innovation should go beyond that – the journalist should have gave us insight into those strategies that differentiated them from the pack, and how. The only reason I can accept he did not give them is that he did not ask, did not understand the industry or he was told its intellectual property. If I were delta, I would not give the as well.

  3. Dada May 17, 2013 at 3:30 pm #

    Innovation is there my dear, the CEO points it out that they acquired new machinery and also diversifies a new product in the operations which have in turn esulted in an increased turnover. Go back to school my dear

    • Wezhira May 17, 2013 at 6:36 pm #

      An increase in revenue of 14% and bottom line increase of 38% is phenomenal by any means.You don’t grow the bottom line that much without doing something right…Kudos to Gowero and his team for such a stellar performance. Whats a bit worrying is the stagnancy in overall volumes growth.So it seems revenue growth has been influenced by a better sales mix but going forward it may be difficult to replicate the same results and the market is always hungry for more….that’s the problem with being successful…everybody expects more of the same.Coming to the quality of reporting, i would appreciate more analysis and less regurgitation and praise singing….i have to troll the internet for answers to my questions.

  4. Elijah May 18, 2013 at 8:45 am #

    Delta looks organised, keep it up guys!

  5. Jamengweni Godonga May 18, 2013 at 11:12 am #

    So lezidakwa ziyanda; sadly it’s the younger generation that finds nothing fruitful to do with their time and end up drinking themselves to zombies. Let us give them jobs so that Delta grows with the rest of the industries. Congrats though!!!

  6. kana deal May 18, 2013 at 12:33 pm #

    ya problem is this company is a slave company how can a company earning so much not pay workers above poverty datum workers forced to go on off instead of paying ovatym bottom line in a new zimbabwe we don’t want exploitation of this kind

  7. Thulani May 18, 2013 at 2:20 pm #

    Delta z mean esp new CEO wt such profit aft vambobawo reward its Hay G and below performance bonus of less thn 400.they are blood sucker coz they promised performance based bonus wc z nt wat the CEO gv thm.blood money.

  8. Mucontract weDelta May 18, 2013 at 9:42 pm #

    Innovation ho oo. But kuno kumamisha hwahwa huri kuuya huri pamhene kana riri dust hatitaure ndiyo innovtion here. Delta hairase tsvina dzemasese adzoka ku market but they blend tsvina idzodzo ne fresh beer voritengesazve ndiyo innovation here iyoyo.

  9. Mucontract weDelta May 18, 2013 at 9:45 pm #

    Vanotadzanei kuita profit vachidzvanyirira vashandi. In a new Zimbabwe we want 2 see a lot of players in ths field

  10. mutenderi wechokwadi May 19, 2013 at 6:53 am #

    there is no new Zimbabwe.
    thiis the only Zimbabwe we have.
    there is only new us in thebody of Christ

    • makarasika May 19, 2013 at 9:45 am #

      new constitution new Zimbabwe what is frustrating is delta beverages gets away with so cruel practice whilst papers portray it as the ideal employer that’s y most delta employees r drunkards only thing they can buy is beer from the meagre salary paid by a company making mega profits in a stagnant economy

  11. gowero,taranhike,gambiza,chanyau May 19, 2013 at 11:46 am #

    Ths company is crap.they pay employees nuts asi madirector anoba na$42mln apo bonus nzungu zvadzo.manje nxt year hakuna sch profit…we wil dil wth them,no production targets wil b met

  12. the stig May 20, 2013 at 9:31 am #

    how does one get to buy shares from such a coporation as delta?

  13. WaDZA May 20, 2013 at 2:11 pm #

    new bottling plant you dunder head

  14. Sando May 20, 2013 at 3:29 pm #

    Maonde akatsvuka panze asi mukati muzere masvosve.Imbopindai muDelta macho muone huori. Taranhike naChinamsa vakaba mari vakadzingwa, $42m. All those companies that closed once flourished, watch this space.

    • masese May 21, 2013 at 7:39 am #

      Taneta nenzugu,Nyarayi wo

  15. speak out May 21, 2013 at 12:00 pm #

    “We have continued to innovate in packaging with the introduction of one-way bottles on both premium and mainstream brands on the back of improved plant capacity and increased returnable bottle float,” he said……………innovation summarized by the CEO

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