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Delta Corporation, Zimbabwe has reported a 4% growth in lager beer volumes for the fourth quarter of 2024, despite operating in a challenging environment. The company’s revenue also increased by 1% during the same period.
According to Delta’s latest trading update, the growth in lager beer volumes was driven by the company’s recent investments in capacity expansion. However, the company’s sorghum-based opaque beer volumes grew by only 2% during the quarter, while sparkling beverages volumes declined by 16% due to sugar tax-induced price increases and imports from neighboring countries.
The company’s secretary, Faith Musinga, noted that the operating environment in Zimbabwe remains complex, influenced by policy changes and currency instability. “The beverages sector faces further challenges relating to uncompetitive retail prices arising from high input costs and taxes, which attract lower priced imports from the region,” she said.
Despite these challenges, Delta Corporation remains committed to investing in its business and expanding its capacity. The company has plans to spend $50 million over the next five years to bolster its beverage production capacity.
The company’s revenue growth of 1% during the quarter reflects the mixed volume performance across its business units. Delta Corporation’s proportion of sales in US dollars remained above 70% for the year, despite fluctuations in exchange rates.
Overall, Delta Corporation’s results for the fourth quarter of 2024 reflect the company’s resilience and adaptability in the face of challenging operating conditions.
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