20 January 2018
   
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
MORE NEWS
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Delta earnings up despite imbibers drink less lagers
13/11/2013 00:00:00
by The Source
 
 
RELATED STORIES
Brewers hit as many opt for Holy Water
Delta’s lager woes hit Zimglass hard
Maheu lifts Delta as tax hike hits lagers
Delta buoyed by surge in beer sales
Delta revenues up 18pc at US$300m
Delta market cap hits US$1billion
Delta sets US$550mln revenue target

ZIMBABWE'S largest beverage manufacturer Delta’s revenue for the half-year to 30 September grew five percent to $315.5 million, underpinned by a similar growth in volumes, reflecting a depressed market.

The brewer, a local unit of the London- headquartered SABMiller, said volumes were up four percent over the same period last year, largely driven by recovery in sorghum beer.

The segment sales increased by nine percent buoyed by high demand in the new product line, Chibuku Super. Income was up 24 percent to $76 million.

“We are selling everything we can produce at the moment and we are scrambling for investment for another plant to boost  production,” finance director, Max Valela told an analyst briefing on Wednesday.

Chief executive, Pearson Gowero said the group will commission a new plant for the sorghum beer line around March, 2014.

Sales in its cash cow lager beers remained depressed, slowing 10 percent because prices have remained high following an increase in excise duty at the beginning of the year. Revenue was four percent lower at $164 million.

Government increased excise duty of clear beer from 40 percent to 45 percent  in the 2013 national budget.

“We are lobbying the government to lower excise duty to drive lager growth,” Valela said.

Sparkling beverages volumes were steady, recording an eight percent growth margin, while income was also up by a similar margin to $110 million.

Growth in maheu volumes was 57 percent on the prior year, while revenue from the segment was 59 percent higher at $7 million.

Operating income was 10 percent higher while operating margins improved to 23 percent driven by cost efficiency.

Total current liabilities stood at $118.8 million, similar to 2012 although short-term debt was lower at $15.7 million compared to $18.6 million.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker