Delta breaches $1bn cap

DELTA Corporation, owned 40 percent by SABMiller, became the first Zimbabwean company to reach $1 billion market capitalisation on the Zimbabwe Stock Exchange.

In trade  on Friday the company picked up 0,48 percent to close at 83,5 cents and take its market capitalisation to $1,004 billion, a first for any Zimbabwean company.

In its last full-year results Delta Corporation posted a 38 percent rise in full-year earnings, driven by strong demand for alcoholic and non-alcoholic beverages.

Delta said basic earnings per share jumped to 6,22 cents on the back of a 19 percent increase in beverage volume sales. Lager beer sales reached 1,98 million hectolitres during the year, almost 100 percent of Delta’s capacity.

The group is currently installing a new 6 000 kilo hectare litre plant in Harare’s Southerton Industrial area in order to meet peak demand.

The new beer plant, is expected to be more efficient on utilities like water and electricity which will be major cost reduction mechanism and add to its other production lines that have been recently installed in order to increase output and production.

Revenue grew 36 percent to $555 milion, and profit after tax rose to $75,2 million. SABMiller started reporting Delta Corporation’s results from April 1, 2010. — business writer/fin24

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