HomeBusiness DigestDelta ahead of budget

Delta ahead of budget

Conrad Dube

DELTA chief executive officer Joe Mutizwa says volumes in the three months to June 30 held up very well particularly lager and sorghum.

erdana, Arial, Helvetica, sans-serif”>”Lager volumes, in June alone, were 5% up on last year and 14% ahead of budget and overall margins increased to 33% from just under 30% last year,” Mutizwa said.

He said despite the depression in soft drink volumes due to the cold weather, he was hopeful soft drink volumes would recover in the remaining period to year-end as the warm weather returned.

Soft drinks contributed only 6% to group bottom line in the just-ended financial year to March 31.

Turnover in the three months under review increased to $50 billion compared to $103 billion achieved in the whole of last year.

The chief executive said sorghum volumes were almost 12% ahead of budget for the three months under consideration.

Recovery in the packaging division, MegaPak Zimbabwe, was very strong and volumes were ahead of budget and up on last year, he said.

Megapak volumes for the year ended March 31 were slightly over 4 000 tonnes converted with turn-over increasing to $6,7 billion which the company said reflected problems in the country with fuel and water supplies.

Mutizwa said this division’s major challenge was to expand capacity so as to meet growing demand and plans were underway to address this.

Megapak Zimbabwe incorporates Megapak (injection moulding), Megapet (PET bottle blowing), Blowmoulders and Megatank (large plastic tank manufacturing).

Mutizwa said market response on the new Castle Milk Stout in terms of penetration was gratifying and ahead of expectation.

“We are very bullish about the Castle Milk Stout brand and we are glad that although it is too early to say much, market response has been good,” said Mutizwa.

Export volumes for barley malt were in line with budget while lager beer exports were 19% up on prior year though off a small base.

New markets for barley malt, lagers and plastic packaging are being developed in the growing markets of Angola and the Democratic Republic of the Congo, Mutizwa said.

“Initial indications are promising although it will take a while to exploit the full potential of these markets,” he said.

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