Delta revenue up 40 percent boosted by 56 percent growth in lager sales

Beverage maker Delta Corporation says its top line shot up by 40 percent in the first quarter to June, driven by a growth in revenue from all its products to improve its cash flow situation and profitability.

Lager beer volumes grew 56 percent, matching the post dollarisation peak for the quarter, while sparkling beverages grew 23 percent.

“The soft drinks category was adversely affected by the challenges in securing imported raw materials, leading to extended periods of production stoppages and out of stock situations,” said the brewer today.

The sorghum beer volumes fell five percent due to shortages of packaging for Chibuku Super, which accounted for 84 percent of total volumes.

Zambian unit, National Breweries, recorded a 21 percent growth in volumes boosted by improved product supply and competitive pricing.

Delta is 40 percent owned by Belgium-based brewer Anheuser-Busch Inbev.

Discussions with The Coca-Cola Company (TCCC) and AB Inbev to explore options to restructure the bottling operations in a number of countries are ongoing, it said.

(110 VIEWS)