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Delta revenue up 58%

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BY TANYARADZWA NHARI
DELTA Corporation Limited (DCL) has reported a 58% growth in revenue in inflation adjusted terms for the year ended March 31, 2022, with over half of the total income in foreign currency sales, the company said yesterday.

Delta said revenue stood at $110,2 billion, up from $69,9 billion recorded in the same period in the prior year.

In historic cost terms, the group recorded revenue of $86,5 billion reflecting a growth of 160% over prior year compared to an average inflation of 83%.

In inflation adjusted terms, the group recorded earnings before interest and tax (EBIT) of $25,4 billion, 37% above prior year. The growth in real terms is attributed to the volume recovery, replacement cost based pricing and ongoing cost management measures, the company said.

Lager beer volume for the year grew by 38% compared to prior year. This is attributed to consistent product supply with respect to both brand and pack.

The sorghum beer volume in Zimbabwe grew by 43% for the year on improved product supply, market pull and the resurgence of our returnable scud bottle.

“The category was affected by limited access to rural markets and key trade channels such as bars and beerhalls that remained inaccessible under COVID-19 lockdowns and curfews during the early parts of the financial year,” it said.

The company said the existing Chibuku Super lines are largely producing to capacity and a new Chibuku Super plant to be installed at the Southerton brewery was on order.

The sparkling beverages volume grew by 65% over the previous year.

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

The beverage volumes grew by 22% over prior year, driven by improved product supply and market recovery of the Minute Maid Juice drinks which were not available in the previous period. Juice shortages have resulted in a market under supply of Mazoe Orange Crush, the mainstay of the business.

Nampak Zimbabwe witnessed sustained strong demand across its business sectors with the packaging divisions being buoyed by the volume recovery in the beverages sector.

“There are some challenges in sourcing key raw materials such as resins and tinplate from the international markets and the COVID-19-related disruptions to international shipping and freighting. The global commodity price cycles are placing cost-push,” the company said.

In a statement accompanying financial results, Delta chairman Sternford Moyo said the Zimbabwean operating environment was expected to remain complex and challenging in the face of difficult choices on economic policy, the unfolding global supply constraints, rising inflation and uncertainties due to the COVID-19 pandemic.

He said the group was undertaking an ambitious recapitalisation programme to address the capacity gaps and improve customer service.

“This is premised on our hope that the authorities will implement progressive policies in line with the national development strategy,” he said.

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