In a trading update today, Delta said Lager beer volumes for the third quarter were 5 percent ahead of prior year and 7 percent up for the nine months to December 2012.
“Sparkling beverages volumes are up 8 percent for the quarter and 10 percent for the nine months. Sorghum beer volumes are down 10 percent for the quarter and 9 percent for the nine months, a trend consistent with that for the first half of the year,” said Delta in a statement.
Delta is one of the country’s biggest tax payers, with US$400 million having been paid over the past three years, Finance minister Tendai Biti recently said.
Biti said Delta’s contribution to Treasury was a huge sign of confidence and belief to the Zimbabwe brand at a time when the country only managed to attract US$350 million in Foreign Direct Investments (FDI) in 2011.
Zimbabwe has been for the past decade struggling to attract FDI due to perceived political risks, controversial government policies and arrears to the international money lending institutions.
“This investment comes at a time when our country is on the road to economic recovery,” he said while officially commissioning Delta’s US$17 million bottling plant in Southerton, Harare.
“We in government are confident that this recovery will gather momentum in the years to come. We are convinced that Zimbabwe is an attractive investment destination.”
Delta said the overall financial performance for the quarter and year to date was in line with their expectations.
“Revenue for the quarter October to December is up 14 percent and 16 percent year to date supported by improved mix and minimal price increases,” said Delta.
“Excise duty on larger beer was increased from 40 percent to 45 percent of manufacturer’s price effective December 1 2012. This has been disruptive on both volumes and retail pricing due to the lack of small denomination coinage. The impact on the business is expected to be minimal,” said Delta.
US$1 billion market capitalisation a move which analysts said could attract more foreign investor participation on the local bourse, which has been underperforming due to liquidity challenges.
Global brewer, SABMiller said Delta Corporation lager volumes increased by nine percent in the six months ended September 30, 2012.
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