Delta Corporation Limited Sees 164% Increase in Revenue to ZW$1,9 trillion in inflation-adjusted terms.

Published On: November 14, 2023Company: Delta Corporation Limited (DLTA.zw)
What significant impact did policy interventions implemented in June 2023 have on the business environment?
The policy interventions resulted in stabilized exchange rates, tighter local currency liquidity and increased the use of foreign currency for domestic transactions, providing a more stable business environment.

Summarized Insight

  • The trading environment exhibited shifts due to fluctuations in currency value and inflation.
  • Policy interventions implemented in June 2023 brought about a more stabilized exchange rate.
  • Due to stable US Dollar pricing, improvements in wages and government expenditure, consumer spending has continued to be buoyant.
  • The Zimbabwean economy benefits from a variety of sources such as mining activities, commercial crop marketing, infrastructure projects and diaspora remittances.
  • South African consumer sectors were impacted by elevated inflation levels, the depreciation of the Rand, and power supply disruptions.
  • The Zambian macro-economic environment remains stable although inflation has increased due to removal of subsidies and shortages of staple maize.
  • The group prioritizes investment in production capacity to support volume growth and improve customer service.
  • Delta Corporation Limited realized 164% increase in group revenue to ZW$1,9 trillion in inflation-adjusted terms.
  • The Earnings Before Interest and Tax (EBIT) grew by 153% to ZW$408 billion in inflation-adjusted terms.
  • United National Breweries South Africa and Natbrew Zambia showed improvements in volume and financial performance.
  • Despite the challenging business environment in Zimbabwe, Delta Corporation Limited will focus on protecting the balance sheet, creating optimal resource allocation, and generating positive cash flows to fund ongoing capital projects.

Useful links

About Delta Corporation Limited (DLTA.zw)

Delta Corporation Limited manufacturers and markets international and locally-produced beverages in Zimbabwe. It operates in four segments: non-alcoholic beverages, sparkling beverages, lager beers and traditional beers. Brands in its non-alcoholic range are a flavoured maize drink called Shumba Maheu, and a flavoured drinking yoghurt called Supersip Yogurt. The sparkling beverages division operates two bottling plants and one canning plant; bottling and distributing popular cool drink brands sold worldwide by the Coca-Cola Company, a range of drink mixes and an energy drink called Burn. The lager beer division operates two breweries; bottling and distributing international brands such as Castle Lite, Miller’s, Peroni, Redds, Brutal Fruit and Sarita. Delta Corporation Limited has a monopoly in the traditional beer market in Zimbabwe with 14 breweries located across the country; brewing and distributing a well-known sorghum beer brand called Chibuku. Other subsidiaries have interests in transport and logistics, barley and sorghum malting, food processing, packaging, retailing wines and spirits, recycling, tin can production and leadership training. Delta Corporation Limited is listed on the Zimbabwe Stock Exchange

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