Delta Corporation Limited has been having product supply gaps in the First Quarter ended June 2018 as foreign currency shortage persist in Zimbabwe.
Foreign currency has been persisting in Zimbabwe despite the coming in of the new dispensation last year.
“There were significant product supply gaps arising from the shortages of imported raw materials and services as the access top foreign currency remains constrained,” Delta.
The adverse of foreign currency has persisted from last year where the corporation said access to foreign currency is increasingly becoming difficult.
The beverage making corporate also reports of constraints in imported inputs.
“Whilst product supply is largely stable, imported inputs remain a constraint,” Delta says in a press release.
“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.”
The corporate also witnessed a decline in sorghum beer volume by 5% due to shortage of packaging materials for Chibuku Super according to the press release.
Although there were challenges, Delta Corporation recorded positive volume trends.
The Sparkling beverages volume increased by 23% over prior year for the quarter according to Delta’s press release.
“Lager beer volume is up 56% over prior year for the quarter matching the historical peak run rates post dollarisation,” Delta says.
“Group revenue increased by 40% (34% organic growth) for the quarter reflecting the changes in category mix,” the corporate says. “All beverage categories recorded increases in revenue which has positively impacted on profitability and cashflows.”
President Emerson Mnangagwa is on record saying that the Zimbabwean government will in due course announce comprehensive strategies to conclusively alleviate the cash and foreign currency problem.
Reserve Bank of Zimbabwe governor Dr John Mangudya last month said that there is foreign currency shortage in Zimbabwe because the rate at which the economy is expanding is faster than the rate at which foreign currency is created to meet the demand.