Delta Corporation credits policy measures for easing inflation

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By Alois Vinga

LISTED beverages manufacturer, Delta Corporation Limited, has credited policy interventions employed by monetary authorities for easing inflation and spurring foreign currency sales for businesses across the economy.

Monetary authorities have sustained the implementation of measures aimed at stabilising the economy, which have seen annual inflation receding from over 800% recorded in July 2022 to the current figure hovering around 200%.

Exchange rate volatilities have also eased, with the country witnessing slower exchange rate depreciation levels.

Presenting a trading update for the third quarter ended December 31 2022, Delta acknowledged the efforts.

“The third quarter witnessed a slowdown in inflation and exchange rate volatility in response to some policy interventions, which resulted in increased foreign currency transactions and constrained Zimbabwe dollar liquidity.

“Consumer spending remains high, benefiting from the stable US$ pricing, improvements in wages and salaries across various sectors and a buoyant informal sector, particularly in mining,” the company said.

Delta also revealed that during the period, the Zimbabwe businesses recorded a significant increase in the proportion of foreign currency sales during the quarter to beyond 70% on the back of a corresponding increase in the purchases settled in foreign currency.

Volumes in the larger beer segment grew by 17% for the quarter and 18% for the nine months compared to the same period last year.

The Sorghum beer volume in Zimbabwe grew by 11% for the quarter compared to prior year and is up 12% for the nine months, while the Chibuku Super Banana flavour, which was launched in June 2022, has excited the market, and will see an increased supply once packaging capacity and supply chain bottlenecks are addressed.

The Sparkling Beverages volume grew by 5% for the quarter and is up 14% for the nine months.

Supply of PET packs remains constrained and will be addressed by the investment in additional capacity, which is expected in the current quarter.

African Distillers Limited (Afdis) reported a volume growth of 10% for the quarter and 11% for the nine months.

“Group revenue grew by 44% for the quarter and 53% for the nine months in inflation adjusted terms compared to growth of 407% and 419% for the quarter and nine months respectively in historical cost terms,” added Delta.