- Delta surpassed the historic ZWL1 trillion revenue driven by strategic capital investments
- Growth was recorded across all sectors
- Sparkling beverages volume grew by 17% and sorghum beer by 4%
Harare- Delta Corporation, the dominating force in the beverage industry, has achieved a remarkable milestone by surpassing the historic ZWL1 trillion revenue mark during the half year to full year 2024. This accomplishment was attributed to the Group’s strategic capital investments, which yielded positive results in terms of increased volume generation.
Delta recorded revenue generation of ZWL1.9 trillion, inching closer to the remarkable ZWL2 trillion mark. This notable growth is a significant leap from the ZWL730 billion revenue recorded during the corresponding period in the previous year.
Delta successfully commissioned three pivotal projects aimed at enhancing their operations and meeting market demands. These projects include a lager glass packaging line in Southerton, a PET line at Graniteside, and the Chibuku Super plant in Harare. The total investment for these projects amounted to US$70 million.
Notably, the recently commissioned Chibuku Super plant, located at the Harare Brewery, is expected to make a significant contribution to volume production during the second half of the year. This strategic investment will play a crucial role in bridging supply gaps within both the domestic and regional markets, ensuring increased availability of their products.
In response, the demand for sparkling beverages witnessed a remarkable growth of 17%, with the volume recovery gaining momentum in the second quarter. This surge was due to the enhanced supply of PET packs, facilitated by the newly commissioned packaging line at Graniteside in Harare. The availability of a wider range of packs and flavors, coupled with more competitive pricing, has contributed to increased consumer accessibility and preference.
The sorghum beer volume in Zimbabwe experienced a steady 4% growth during the first half of the year, showcasing the continued market demand and consumer interest compared to the previous year.
“The new Chibuku Super plant at the Harare Brewery was commissioned at the end of September and will contribute to volume in the second half of the year. This investment will assist in closing the supply gaps in both the domestic and regional markets,” Sternford Moyo, the Group’s chairperson said in a statement accompanying the half-year financials.
The Group's impressive volume growth extends beyond the borders of Zimbabwe, showcasing positive performance across all its operations. At United National Breweries in South Africa, volumes experienced a steady 2% growth, reflecting sustained market demand and consumer engagement, while at Natbrew Zambia, the volume recovery trend persisted, resulting in an outstanding growth rate of 67%.
This was attributed to the success of Chibuku Super and the increased adoption of returnable packs. The company's enhanced market penetration efforts have played a pivotal role in driving this substantial growth in the Zambian market.
Afdis witnessed a noteworthy volume growth of 10% in its wines and spirits division, surpassing the previous year's performance while Schweppes achieved a growth of 7% compared to the previous year during the six-month period.
However, the business faced challenges due to limited supply of bottled water and Minute Maid Juice Drinks. This scarcity was a result of the decommissioning of a production line to facilitate the installation of a new plant, impacting the overall availability of these products.
“Product supply will improve following the commissioning a new packaging line in October 2023,” said Moyo.
Meanwhile, Nampak Zimbabwe experienced a relatively modest performance during the period under review. The plastic packaging units, MegaPak and CMB, encountered challenges stemming from prolonged power supply disruptions and occasional shortages of key raw materials. Nonetheless, Hunyani, benefiting from increased tobacco output in Zimbabwe and Malawi, achieved notable recognition as the ZNCC manufacturing sector exporter of the year 2023.
As a result, the Group's revenue witnessed a significant increase of 164% in Zimbabwe dollar terms and 9% in US dollar terms. Foreign currency sales exceeded 80%, capitalizing on the prevailing ZWL liquidity crunch in the economy, which has led to an increased concentration of US dollars.
Earnings before interest and tax (EBIT) experienced a substantial growth of 153% to ZWL408 billion in inflation-adjusted terms, reflecting an estimated 10% growth in US dollar terms. This positive performance translated into a Profit After Tax (PAT) of ZWL338.78 billion, a significant increase from ZWL65 billion.
Looking ahead, the Group maintains an optimistic outlook, buoyed by the latest splendid performance.
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