Delta turnover rises 54%

DELTA Corporation’s turnover rose 54% to US$101 million during the second quarter of the year, buoyed by strong demand during the World Cup, CEO Joe Mutizwa has said.

During the company’s Annual General Meeting (AGM) held last week on Wednesday, Mutizwa said the group recorded the strongest quarter to June 30 for lagers in terms of volumes since 2004 driven by demand during the World Cup.

“During the three months to June, turnover amounted to US$101 million, up 54%,” said Mutizwa.

He says the group maintained sales forecasts of six million hectolitres in the full year, but margins would be higher as a result of a change in the mix from lower margin sorghum.

Delta’s turnover in the year to March 2011 has been upgraded to US$484 million from US$480 million.

Delta currently has stocks of barley, a key beer ingredient, to take the group through to February 2011. This year, the beer and beverages maker contracted farmers to plant 7 400 hectares but 6 856 hectares were planted. The group had retained farmers who produced at least four tonnes per hectare.

During the AGM, Robbie Mupawose stepped down as chairman of Delta and the beverage firm appointed prominent Harare lawyer Canaan Dube as his replacement.

Mupawose had been with Delta for the past 13 years.

Delta is investing US$160 million in new bottling lines, glass packaging and to boost capacity of its mothballed plant in the next three years in anticipation of growing demand for beer and beverages.

Delta last year spent US$46 million on a new bottling line and glass.

Delta said it will this year commission a US$14,5 million beer bottling line in Bulawayo, invest US$1 million in a carbon dioxide plant and US$13, 1 million in returnable glass.

According to the company, the US$14 million bottling line will have a capacity to produce 42 000 bottles an hour.

An additional $12,5 million will be invested in the Southerton bottling line and mothballed brewery in Zvishavane that came back on stream last year.
Management hopes this will lift output to meet growing demand.

 

Paul Nyakazeka

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