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HomeCompanies and MarketsDelta Corporation registers 43% revenue growth for 2024

Delta Corporation registers 43% revenue growth for 2024

Delta Beverages

Delta Corporation registers 43% revenue growth for 2024

By Allan Mbotshwa

Beverage giant, Delta Corporation Limited reported revenue of US$768 million, a growth of 43% over the prior year, and operating income amounted to US$152 million, reflecting a 53% growth over the prior year.

“These reported earnings may be influenced by distortions stemming from inflation rate and exchange rate fluctuations and the IFRS conversion processes,” said the group chairman, Mr Sternford Moyo.

Management has tracked underlying data based on a month-on-month business performance which indicates an actual revenue growth of 10%, consistent with reported volume growth, with approximately 80% of sales conducted in foreign currency.

The Lager beer business recorded a historic volume of 2.46 million hectolitres for the year, a growth of 13% compared to the prior year. The new packaging line commissioned in August 2023 has stabilized overall product supply.

Zimbabwe’s total sorghum beer volume, including exports, grew by 3% over the prior year, off a high prior year base. The volume sold in the domestic market was flat compared to the preceding year. The traditional beer category was significantly affected by the disruptions to the route to market.

The Sparkling beverages volume for the year at over 2 million hectolitres was 29% above the prior year. The growth was spurred by the improved supply of PET packs and flavors following the commissioning of a new packaging line at Graniteside, Harare in June 2023 which has allowed for keener pricing.

African Distillers (Afdis) recorded a marginal volume growth of 1% over the prior year as overall demand was negatively impacted by price distortions in the face of cheaper imports and increased availability of illicit products on the market.

Volume at Schweppes was 11% above the prior year as the sector had to effect very high price increases in response to the sugar surtax. The cordials category inherently has high sugar content which is reduced on dilution at the point of consumption.

Nampak Zimbabwe volumes for the half year to March 2024 are ahead of the prior year across all businesses, benefitting from increased exports of paper products and the higher pull of plastic packaging from the beverages sector.

The Board declared a final dividend (number 134) of US2.0 cents per share to be paid on 26 June 2024. This brings the total dividend for the year to US3.0 cents per share.

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