Delta reports strong HY performance

 

BUSINESS REPORTER

 

Zimbabwe’s largest brewer, Delta Corporation Limited reported a 164%  increase in revenue  in the six months to September 30, 2023 to ZWL$1.9 trillion  from ZWL$728.91bn achieved in the prior comparative period, Business Times can report.

 

This was attributed to strong volume growth across all business units.

The rise in topline comes after the business invested US$70m in capacity in the Chibuku Super Plant and packing line, PET packaging line, and lager beer glass packaging line.

CEO of Delta Corporation Matts Valela stated during a Thursday analyst briefing that the company was able to double its production capacities across all units as a result of the investments.

 

“The spike in revenue reflects the volume growth across business units and the increased proportion of foreign currency sales to over 80%. There was an increase in the proportion of domestic transactions settled in foreign currency,”  Valela said.

 

Earnings before interest and tax (EBIT) grew by 153% to ZWL$408bn in inflation adjusted terms.

 

“To provide users with a better insight into the underlying performance, it is noted that the proforma financial information indicates group revenue at US$376m up 9% over the prior year, whilst EBIT is indicated at US$85m,” he said.

 

 

Delta profit surged 420% to ZWL$338.78bn during the period under review from ZWL$65.17bn due to the rate tracking prices and high volumes.

 

 

 

The lager beer  volumes recorded a 13% growth, sorghum beer volumes increased 4%, sparkling beverages volume upped 17%, African Distillers volumes grew 10% and Schweppes Holdings Africa volumes expanded 7%.

 

 

Related