Joe Mutizwa, Chief Executive of Delta Corporation, told international investors the companys capacity would increase when the new plant had been completed.
South Africa’s SAB Miller (Zimbabwe) B.V. has a 15,1 percent stake with 2114 million shares in the top beverages concern.
Mutizwa said drinks consumption in the country was considered low by developing world standards at 40 litres per capita annually. He said this suggested tremendous growth potential off a low base.
Delta Beverages Limited has installed brewing capacity of 3 million hectolitres in its lager business, which has two breweries in Harare and Bulawayo. However due to years of under utilisation and the limited maintenance, current available capacity is close to 2 million hectolitres annually.
Delta plans to spend about $112,8 million in capital expenditure over the next two years. Analysts say despite having a fairly heavy capital expenditure profile, Delta has a strong balance sheet and is therefore able to fund the expenditure.
There are 15 traditional sorghum breweries, which have a combined available capacity of 5.5 million hectolitres. Capacity utilisation averages about 60 percent and demand has remained strong.
Volumes are expected to reach 3.3 million hectolitres in the 2011 financial year. Delta’s share price on the Zimbabwe Stock Exchange is firm, standing at $0.82, which is among the highest. The firm constitutes about 21 percent of the entire ZSE market capitalisation.
Post published in: Business