HPTO-NMB-080321

Delta revenue up 77 percent

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Emmerson Njanjamangezi

SENIOR STAFF WRITER

njanjamangezie@dailynews.co.zw

ZIMBABWE Stock Exchange-listed beverage maker, Delta group, says revenue grew by 77 percent for the third quarter ended December 31, 2020 owing to significant increase in sales for both alcoholic and non-alcoholic beverages.

In a statement yesterday, Delta said revenue grew on the back of the eased lockdown regulations during the quarter to December 31,  2020, allowing for increased business activity.

“The improved access to foreign currency has resulted in stable pricing and consistent product supply due to better access to imported raw materials and spares,” read part of the statement

Lager beer volume grew 48 percent for the quarter and 20 percent for the nine months compared to the same period last year.

The volume recovery is attributed to the competitive pricing and consistent product supply, benefiting from the injection of new returnable glass and fewer disruptions to production operations.

For Zimbabwe, the sorghum beer volume grew 29 percent for the quarter, but still trailed prior year by 14 percent for the nine months.

The sorghum beer category was negatively impacted by limited access to trade channels such as bottle stores and rural markets in the first half of the year.

The volume at Natbrew Zambia declined by two percent for the quarter and is up five percent for the nine months.

The category witnessed the resurgence of illegal trading in bulk beer which trades at a discount to packaged product.

For the South African entity, United National Breweries recorded a year on year decline of 19 percent for the quarter as South Africa implemented strict restrictions and bans on the sale and consumption of alcohol.

Sparkling beverages volume grew by 66 percent for the quarter and is up 42 percent for the nine months compared to the prior year.

“The category benefited from consistent product supply and competitive pricing.

“The sales mix has shifted towards take-home packs in response to the restrictions on gatherings,” further read the statement.

African Distillers (Afdis) registered volume growth of 37 percent for the quarter and 25 percent for the nine months driven by the spirits and ready to drink ciders.

The beverages volume at Schweppes Holdings recovered and registered growth of 24 percent for the quarter but is down 2 percent for the nine months.

The recovery was premised on improved product supply and the re-launch of the Minute Maid range of juice drinks.

 

 

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