RYAN CHIGOCHE
Zimbabwe’s largest brewer, Delta Beverages says increased use of foreign currency in domestic transactions has spurred the company’s performance in the quarter to December 31,2021.
The company’s finance director and secretary, Alex Makamure, also said the company benefited from receding inflation as well as consumer spending in foreign currency.
“In Zimbabwe, the economy continues to benefit from slower inflation and increased use of foreign currency for domestic transactions which provides industry with better access to imported raw materials and inputs.
“Consumer spending was spurred by increased mining activity, improved agricultural output, infrastructure projects and payments of bonuses and salaries in foreign currency,” Makamure said.
He added: “The group continues to leverage on the increased access to foreign currency through domestic nostro sales to contain input costs, which allows for competitive pricing.’’
Delta’s revenue grew by 34% for the quarter and 51% for the nine months in inflation adjusted terms compared to growth of 120% for the quarter and 149% for the nine months in prior comparative period.
Volume for the lager beer grew by 6% in the reviewed period benefiting from the injection of returnable glass and improved plant reliability.
Sorghum beer volume grew by 25% while Chibuku Super contributed 77% in the quarter under review.
Volume for the sparkling beverages grew 34% in the quarter under review and 62% for the nine months compared to prior comparative periods.
The wines and spirits volumes at African Distillers Limited grew by 32% for the quarter and 48% for the nine months, driven by improved supply of ciders and other locally produced brands, on the back of better access to imported inputs.
Makamure is optimistic that consumer spending is going to increase, benefiting businesses operating in the country.
He said Delta is going to make some important investments going forward as a result of increased access to foreign currency.
“The Zimbabwean businesses will continue to benefit from the growth in consumer spending driven by agriculture, mining, infrastructural development and general commerce. The improved access to foreign currency will enable the company to undertake critical capital investments,” Makamure said.
