Delta delivers double digit topline growth

TENDAIISHE NYAMUKUNDA

 

Delta Corporation Limited, the country’s largest brewer, reported a 23% increase in revenue in the quarter to June 30, 2024 compared to the prior comparative period, Business Times can report.

 

Faith Musinga, the group company secretary, said that while the volume of lager beer grew by 9% in the period under review , whereas the volumes of sparkling beverages increased  by 11% .

These were attributed to a delay in the implementation of the sugar tax-induced price increases and strong marketing campaigns.

 

Volumes in the sorghum beer category, however, decreased by 10%  in the period under review compared to the previous year.

“This reduction was due to the cessation of exports to regional markets following the completion of capital projects in those countries and the onset of the drought. The category is also impacted by competition from hard spirits, our own increased lager beer supply, and investments by competitors in the same category. The sorghum beer category is the most affected by the drought due to lower consumer disposable incomes in rural markets and cost pressures on key cereals such as maize and sorghum,” Musinga said.

 

In the spirits and wines category, African Distillers Limited (Afdis) reported a 6%  volume growth in the period under review.

 

Musinga added that with the launch of the Zimbabwe Gold (ZiG) during the period under review, Delta saw a decrease in their foreign currency collections.

‘’Collections of foreign currency through domestic sales have declined from an average of 80% in the prior year to 65% following the introduction of the ZiG currency and the strict enforcement of dual pricing at official exchange rates in the formal retail sector,” Musinga said.

She added :’’While some modest gains have been realised through the willing buyer, willing seller arrangement, this area remains a key focus in accessing the much-needed foreign currency to meet the group’s requirements and the deployment of the increased ZiG inflows.

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