By Alois Vinga
LISTED beverage manufacturer, Delta Corporation Limited has pinned future growth hopes on surging US dollar sales on the back of the current economic growth amid revelations.
Presenting a trading update for the third quarter of 2021, Delta’s company secretary, Alex Makamure hailed the Zimbabwean trading environment for spurring revenue growth.
“The economy continues to benefit from slower inflation and increased use of foreign currency for domestic transactions which allows industry improved access to imported raw materials and inputs,” he said.
“The group continues to leverage on the increased access to foreign currency through domestic nostro sales to contain input costs, which allows for competitive pricing.”
However, the company did not declare the exact quantum of US dollar sales recorded during the period.
Through Statutory Instrument (SI) 85/2020, the Reserve Bank of Zimbabwe (RBZ) allowed companies and the public to use foreign currency in carrying out local transactions in a move widely hailed by businesses for creating an avenue to internally mobilise the much needed US dollar.
During the period under review, lager beer volumes grew by 6% for the quarter compared to the same period last year with improved product supply on the back of the returnable glass and improved plant reliability.
In Zimbabwe, the sorghum beer volume grew by 25% for the quarter with Chibuku Super contributing 77% of the sales.
The sparkling beverage unit registered a robust volume recovery to grow by 34% for the quarter.
The volume at African Distillers Limited (Afdis) grew by 32%, driven by an improved supply of ciders and other locally produced brands
“Group revenue grew by 34% for the quarter and 51% for the nine months in inflation-adjusted terms compared to growth of 120% for the quarter and 149% for the nine months in historical cost terms reflecting the volume recovery and replacement cost-based pricing.
“The group continues to leverage on the increased access to foreign currency through domestic nostro sales to contain input costs, which allows for competitive pricing,” added Makamure.