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Delta Earnings Up On Volume Recovery


Beverages maker, Delta Corporation posted a 149 percent growth in revenue for the nine months to December (Q3) in historical cost terms following a steady recovery in volumes growth.

The group leveraged on the increased access to foreign currency through domestic nostro sales to contain input costs, which allowed for competitive pricing.

The group had been struggling to access adequate foreign currency to import raw materials in recent years, until the economy re-dollarized in 2020.

“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,” said Delta in its Q3 trading update.

In Zimbabwe, the Sorghum beer volume grew by 25 percent for the quarter and 50 percent for the nine months compared to prior year. Chibuku Super contributed 77 percent in the quarter.

The Zambian subsidiary, Natbrew continued to be weighed down by uneven competition from informal bulk beer players who avoid paying taxes.

Furthermore, the increase in excise duty implemented in January 2022 favours the illicit trade of beer and is expected to further entrench the uneven playing field.

As a result, volumes in Zambia marginally grew by 2 percent for the quarter and were down 16 percent for the nine months.

United National Breweries South Africa recorded a volume growth of 2 percent for the quarter and grew by 49 percent for the nine months in comparison to prior year.

The Sparkling Beverages business registered a robust volume recovery to grow by 34 percent for the quarter and 62 percent for the nine months compared to prior year.

“This reflects market share gains driven by affordability, consistent product supply and an expanded pack and flavor offering,” said Delta.

The volume at African Distillers Limited (Afdis) grew by 32 percent for the quarter and 48 percent for the nine months, driven by improved supply of ciders and other locally produced brands, on the back of better access to imported inputs.

Schweppes Holdings recorded a beverages volume growth of 15 percent for the quarter, benefitting from the increased economic activity and consistent product supply.

Nampak Zimbabwe is still to report their results to 30 September 2021.


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