Increased production in the local mining and agriculture sectors, as well as easing of the COVID- 19 lockdowns buoyed consumer earnings. Delta’s 1H22 volumes growth mirrored the prevailing trend in the local consumer sector, which has seen consumers trading upwards given recovering liquidity (albeit from a low base). This was evidenced by growth in the Lager Beer division’s premium segment. Volumes for all business units trended above the 5 year average. Lager volumes were up 57% y/y. Despite limited access to some key trade channels, local Sorghum Beer volumes were up 68% y/y. Volumes at Natbrew Plc (Zambia) were down 22% compared to same period last year. The Zambian segment remains under pressure due to limited access to the market given Covid-19 restrictions as well as the resurgence of competition from bulk beer offerings that are not excise/VAT compliant. The South African entity, United National Breweries benefited from the lifting of the alcohol ban recording a volumes increase of 118%. Sparkling Beverages volumes grew 95% y/y. Competitive pricing initiatives as well as consistent product supply helped the segment recover market share. The Manicaland territory has been fully integrated, allowing the optimization of the production capacity. African Distillers Limited (Afdis) registered a volume growth of ...
