Forex shortages causing supply gaps: Delta

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South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko

DELTA Corporation says foreign currency shortages in the market are increasingly affecting the group’s raw material supply chain, a company official said.

BY NKULULEKO SIBANDA

The group’s corporate affairs manager Patricia Murambinda said her company was feeling pronounced effects of biting foreign currency shortages in the country has been battling with in recent years.

She said foreign currency shortage have seen disruptions in the raw materials supply chain.

“There were some considerable disruptions for the supply of Chibuku Super due to supplier limitations impacting packaging material suppliers of key packaging materials,” she added.

Delta acquired a Lusaka Stock Exchange-listed beer company, National Breweries (Natbrew), which Murambinda said was also registering growth.

“Our new Zambian subsidiary, National Breweries, registered a 21% growth for the quarter on improved product supply. (This, in total saw the) Group revenue up by 52%, 45% if we are to exclude our Natbrew subsidiary in Zambia and is up 18 percent for the full year and 17%, excluding Natbrew,” said Murambinda.

“The last quarter and full-year (which) ended 31 March 2018 registered strong consumer demands — a continuation of the positive trends witnessed in the previous quarter.

“There were pronounced product supply gaps occasioned by the challenges in acquiring imported raw materials and services as access to foreign currency has become increasingly difficult,” Murambinda said.

Thanks to the visionary leadership of the company, the beverage manufacturer had managed to remain afloat, posting profits in its various product brands, she said.

“Lager beer volumes grew by 51% above prior year for the quarter and 27% for the full year. Sparkling beverages volumes increased by 48% over the prior year for the quarter and 15% for the 12 months,” she said.

Delta, Murambinda highlighted, was basking in an eight percent growth in its sorghum beer volume for Zimbabwe — a feat she said surpassed volumes recorded last year during the same period.

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