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Delta Revenue Up Amid Mixed Volume Performance

Zimbabwe’s largest beverage maker, Delta Corporation has announced a revenue of ZWL$ 12.94 billion (inflation adjusted) in the six months to September on account of inflation induced pricing despite posting mixed volume performances in its sub-divisions, 263Chat Business reports.

Revenue was 11 percent above comparable period last year.

Earnings before interest and tax grew by 15 percent to ZWL 4.03 billion over prior year.

Due to increased inflation during the period, the company had to adjust product prices to ensure business viability.

On the production side, volume performance was somewhat varied due to the effects of Covid-19 pandemic lockdowns which affected supply chains in different ways.

Zimbabwe entered into lockdown in March with beer sales allowed albeit at very minimum scale while in markets such as South Africa beer sales were completely prohibited culminating in severe volume cuts for the better part of the six months.

Sorghum beer volumes in Zimbabwe declined 31 percent due to the limited access to key trade channels such as bars, bottle stores and the rural markets during lockdown particularly in the first quarter.

However, this was a different case with sorghum beer volumes in the Zambian division which grew 8 percent largely due to the improved appeal of Chibuku Super which is relatively new on the market.

The South African entity, United National Breweries was largely closed for the first four months as the authorities implemented very strict prohibitions.

Lager beer volume grew 3 percent compared to the same period last year, reflecting a growth of 18 percent in the second quarter enough to offset the sharp decline recorded in the first quarter when the COVID-19 restrictions were at their peak.

“The volume recovery is underpinned by competitive pricing and consistent supply,” said company secretary, Alex Makamure.

Sparkling beverages volume grew by 22 percent over last year, albeit from a low base with the spirits making division-African Distillers posting volume growth of 15 percent for the six months.

At Schweppes Holdings Africa, volume outturn was 18 percent below prior year due to challenges in accessing imported raw materials and the impact of COVID-19.

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