DT Correspondent
HARARE: The country’s largest beverages maker Delta Corporation (Delta) says the uptake of ‘Chibuku Super’ opaque beer in South Africa is increasing after recording a volume growth of two percent in the second quarter of 2023.
The company’s board chairman, Sternford Moyo said the group will commission a new opaque beer plant next year for its subsidiary, United National Breweries to meet growing demand in South Africa.
“There was a delay in the shipment of the equipment for the local production of Chibuku Super, which is now rescheduled to the fourth quarter,” Moyo said in a statement accompanying financials.
“United National Breweries South Africa recorded a volume growth of two percent in the second quarter from 779 000 hectolitres of opaque beer during the period compared to 780 000 in the prior year and is flat on the prior year for the six months. The uptake of Chibuku Super is promising, which is supported by the entry into a number of formal retail chains,” Moyo added.
He also said for the local unit, volumes grew four percent to 2 173 000 hectoliters compared to 2 084 000 in the comparable period.
“The volume recovery at Natbrew Plc (Zambia) continued, recording a growth of 67 percent for the six months, driven by Chibuku Super and returnable packs and increased market penetration. The financial performance has been negatively impacted by the steep rise in maize prices and cost increase on imported materials,” Moyo said.
Delta’s revenue increased by 164 percent to ZW$1,9 trillion in inflation-adjusted terms compared to a growth of 879 percent in historical cost terms and nine percent in US dollar terms.
On revenue growth, he said it reflects the volume growth across business units and the increased proportion of foreign currency sales to over 80 percent.
“To provide users with a better insight into the underlying performance, it is noted that the proforma financial information indicates group revenue at US$376 million, up nine percent over the prior year, whilst EBIT is indicated at US$85 million”
