eBusiness Weekly
Tapiwanashe Mangwiro
Beverages giant, Delta Corporation, reported a $339 billion inflation adjusted after tax profit for its half year ended September 30, 2023, a 420 percent increase in nominal terms and a 9 percent rise in US Dollar terms.
The group’s operating income increased 153 percent to $408,4 billion, while EBITDA increased by 142 percent to $436 billion.
Total revenues increased by 164 percent to $1,9 trillion with the group noting strong growth in volumes across all segments and an increased proportion of forex sales to over 80 percent. The group commented that the consumer spending was buoyant during the period, driven by stable US dollar pricing and improvements in salaries and wages across all sectors.
It’s a financial performance that is largely reflective of Delta’s dominant position in Zimbabwe’s consumer landscape, with half-year revenues and total assets comfortably breaching the $1 trillion mark.
Economist Tinevimbo Shava said; “The main take is that the group’s business is now largely dollarised and this has gone a long way towards stabilising its capacity to reliably supply its markets.”
As the economy at large trends towards dollarisation, Delta faces a mixed bag, with a subdued short-term economic outlook likely to constrain the group’s increased internal capacity.
There is the threat of a subdued agricultural harvest and rising agricultural commodity prices which could dampen consumer appetite in the second half-year.
“The comparatively weak growth in the Sorghum Beers segment could point to some challenges brewing. On the other hand, the group’s foreign operations offer hope, particularly NatBrew in Zambia.
“Otherwise, the group’s financial position looks reasonably secure, concerns about the low cash levels are allayed by the increased USD income, while the significant capital expenditure points to a positive medium to long-term outlook from the group’s management,” concluded Shava