Delta Corporation posted a 14 percent growth in profit (inflation adjusted) during the six months to September, 2021 on the back of increases in volumes across all segments, the Group has announced.
Profit for the six months reached $ 6.645 billion from $ 4.894 billion previous year comparable period.
In its Half Year (HY) statement, group income reached $ 33.591 billion from $19.608 billion realized same period last year.
“The half year interim financial statements reflect an improvement in the financial performance, benefiting from the volume recovery, the correction of value chain costs in real terms and realignment of pricing to competitive levels. There were increases in the cost of plastic packaging driven by global commodity cycles,” said Delta.
Lager beer volume for the six months grew by 57 percent compared to the same period last year, attributed to competitive pricing and consistent product supply with respect to both brand and pack. Price increases were less frequent and lower, in line with falling inflation.
In Zimbabwe, the sorghum beer volume remained buoyant to register a growth of 68% for the six months in comparison to prior year. This was despite the curtailed distribution into rural markets and limited access to some key trade channels such as bars and beer halls that remained inaccessible under COVID-19 lockdowns and curfews.
The volume at Natbrew Plc (Zambia) declined by 22 percent for the six months due to the limited access to the market under COVID-19 restrictions and resurgence of competition from the illegal bulk beer offering.
United National Breweries South Africa benefited from the lifting of the alcohol ban to record a volume increase of 118 percent over prior year.
“The business is implementing volume recovery initiatives with a focus on recruiting new customers and reinvigorating the product offering,” said Delta.
The Sparkling beverages volume grew by 95% over the previous year. The business has responded positively to the ongoing initiatives to recover market share through competitive pricing, focused market execution and consistent supply of brands, flavours and packs.
African Distillers Limited (Afdis) registered a volume growth of 66% over the prior year. Ready to drink volume grew by 116%which is attributed to improved availability of Ciders. Wines and Spirits grew by 88% and 34% respectively.
