Staff Writer
HARARE – Delta Corporation revenue for the first quarter ending June improved by 40% for the quarter driven by local lager beer consumption and sorghum beer volumes in its Zambian operations despite foreign currency shortages, the company announced on Wednesday.
According to the company’s trading update, lager beer volume were up 56% over prior year for the quarter matching the historical peak run rates post dollarisation.
“Whilst product supply is largely stable, imported inputs remain a constraint. The Sparkling beverages volume increased by 23% over prior year for the quarter,” reads the trading update.
“The business continues 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.”
The soft drinks category, the company said was also adversely affected by the challenges in securing imported raw materials, leading to extended periods of production stoppages and out of stock situations.
In Zimbabwe, the Sorghum beer volume declined by 5% mainly due to shortages of packaging materials for Chibuku Super. Product supply had improved by the end of the quarter.
“The product mix has shifted to Chibuku Super which grew by 28% to contribute 84% of the volume. National Breweries Plc – Zambia (Natbrew Plc) recorded a volume growth of 21% on improved product supply and competitive pricing. Group revenue increased by 40% (34% organic growth) for the quarter reflecting the changes in category mix. All beverage categories recorded increases in revenue which has positively impacted on profitability and cashflows,” the company said.
