Delta Corp Ltd. Reported 38% Growth in Sparkling Beverage Volume for the Quarter and 25% Growth for Nine Months.

Published On: January 26, 2024Company: Delta Corporation Limited (DLTA.zw)
What were the main factors that contributed to the strong consumer spending in Zimbabwe?
The main factors contributing to the strong consumer spending in Zimbabwe include stable US Dollar pricing, revenue from mining activities, income from government infrastructure projects, and remittances from the Zimbabwean diaspora.

Summary

  • The Zimbabwean economy is facing issues with liquidity mismatches, differing exchange rates, and rapid fluctuations in inflation.
  • Consumer spending remains strong due to stable US Dollar pricing, mining activities, government projects, and diaspora remittances.
  • The economies in South Africa and Zambia have been affected by inflation, currency depreciation, and other localized issues.
  • Delta Corporation’s Lager beer business reported a growth of 15% for the quarter and 14% for the nine months.
  • The total volume of Sorghum Beer in Zimbabwe, including exports, grew by 3% for the quarter and 4% for nine months.
  • Sparkling Beverages experienced a volume recovery with a growth of 38% for the quarter and 25% for the nine months.
  • African Distillers registered a sluggish performance with a volume decline of 12% due to grey trade and supply disruptions.
  • Schweppes recorded a volume growth of 16% over the prior year for the quarter.
  • Nampak Zimbabwe volumes for the quarter were 8% ahead of the prior year, currently facing shortages of key raw materials and power supply disruptions.
  • The group revenue increased by 19% in the quarter and by 12% for the nine months.
  • The presentation of F24 financial statements has been changed to US Dollars due to the current operating environment.
  • No easy solutions to the numerous economic challenges in Zimbabwe.
  • Delta Corporation remains focused on exploiting opportunities to generate aggregate demand and improving their operational efficiencies.

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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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