Regional markets were adversely affected by imported inflation from the global arena and resultant supply chain hiccups from the Ukraine/Russia war. On the local front, dislocations in monetary stability had a defined impact in the business environment. However, consumer spend in foreign currency remained resilient as key sectors such as mining saw increased activity. Looking at segments, lager volumes grew 18% y/y from a more stabilised product into the market. Operations however continued to be hamstrung by production capacity and supply constraints in packing. Local sorghum beer volumes registered a 14% uptick driven by re-introduction of scud packs and foray into flavoured beer. The South African entity, United National Breweries benefited from marketing initiatives with a volumes increase of 63%. In the Zambian market, a positive development was that of volumes turning the corner into positive territory growing 7% for the half year. Sparkling beverages volumes grew by 22% y/y whilst Afdis volumes recorded a 22% increase to 1H23. Delta’s outturn for 1H23 as per management’s comments was circa US$346mn, up 32% versus the comparable period last year. UNB South Africa recorded a breakeven outturn whilst Natbrew Zambia posted a loss due to depressed volumes. Overall, from guidance of basic EPS of US$0.0584, Delta registered a PAT of US$76mn. The group continued to exhibit strong cash generation abilities, with OCF/EBITDA improving from 70% in 1H22 to 92% in the period under review. The Board declared an interim dividend of USc1 per share payable on the 15th of December.
