Zimbabwean beverage giant, Delta Corporation, is anticipating substantial volume growth in the current financial year, fueled by a significant US$71 million investment in production capacity expansion.
The Zimbabwe Stock Exchange-listed company allocated US$15 million to its lager beer operations, US$20 million to Chibuku Super, US$10 million to a soft drinks PET line, US$5 million to its vehicle fleet, US$15 million to container acquisition, and US$1 million to its associate, Afdis.
These investments have boosted Delta’s daily production capacity to approximately 350,000 liters, while the national beer packaging capacity has climbed from 2.2 million to 2.9 million hectoliters annually.
The company expects to benefit from increased product availability and enhanced operational efficiency across its business units.
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Despite these positive developments, Delta acknowledges potential challenges arising from declining global mineral prices and reduced domestic agricultural output due to the El Niño-induced drought.
While gold production remains robust, overall mining revenue is projected to decrease by 10% this year.
The company anticipates that the negative impact of these factors will be partially offset by increased mining output and continued strong remittances from the Zimbabwean diaspora.
Operationally, Delta reported a 43% revenue surge to US$768 million for the 2024 financial year, coupled with a 53% increase in operating income to US$152 million.
The company remains optimistic about consumer spending across its markets, identifying growth opportunities amidst a challenging economic environment.
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