Zimbabwe News and Internet Radio

Delta sees jump in Q1 revenue

By Shamiso Dzingire

Listed beverages manufacturer, Delta Corporation, has reported a 40 percent jump in revenue for the quarter first quarter ended 30 June 2018 on the back of increased larger beer and sparkling beverage volumes.

Despite the continued shortage of foreign exchange, which has frustrated operations across sectors, Delta reported in a trading update released yesterday, that all beverage categories recorded increases in revenue, which positively impacted on profitability and cash flows.

“Larger beer volumes are up 56 percent over prior year matching the historical peak run rates past dollarisation. While product supply is largely stable, imported inputs remain a constraint,” Delta said.

The company said its sparkling beverages volume also increased by 23 percent over prior year for the quarter. However, the soft drinks category was adversely affected by the challenges in securing imported raw materials, leading to extended periods of production stoppages and out of stock situations.

Although the business continued to record positive volume trends, there were significant product supply gaps arising from the shortages of imported raw materials and services as the access to foreign currency remains constrained.

In Zimbabwe, the company said, sorghum beer volume declined by five percent largely because of shortages of packaging materials for Chibuku Super.

Despite the decline, product supply improved by the end of the quarter, with the product mix shifting to Chibuku Super, which grew by 28 percent to contribute 84 percent of the volume. Delta also recorded a 21 percent volume growth at its Zambian subsidiary, National Breweries Plc (Netbrew Plc), which it acquired in January this year.

The company attributed growth to improved product supply and competitive pricing.

Meanwhile, the Delta board of directors have declared an interim dividend of $2 per share payable in respect of all the qualifying ordinary shares of the company to be paid out of the profits for the current financial year. In total, Delta will pay $25,2 million in dividends. — The Chronicle