Delta Corporation expects significant growth in volume during the current financial year after the group invested US$71 million last year to boost production capacity.
The Zimbabwe Stock Exchange-listed group invested US$15 million into the lager beer operation, US$20 million into Chibuku Super unit, US$10 million into a soft drinks PET line, US$5 million in the vehicle fleet, US$15 million into containers US$15 million, and US$1 million into its associate, Afdis.
This has bolstered Delta's capacity as the group now has a daily production capacity of about 350 000 litres while the national beer packaging capacity has risen to 2,9 million hectolitres (290 million litres) from 2,2 million hectolitres (220 million litres) per annum.
According to Delta, the business is poised to benefit from enhanced product supply and additional production capacity.
Furthermore, improved operational efficiencies across various business segments are projected to provide further support as the firm continues to prioritise capitalising on opportunities that drive overall demand.
"The business will benefit from the improved product supply following the commissioning of additional production capacity during the past year and improved operational efficiencies across the business segments," said Delta in its 2024 annual report.
However, Delta expects some headwinds in the operating environment owing to lower global minerals prices and reduced domestic agricultural output.
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Revenue from mining, Zimbabwe's largest source of forex, is expected to fall by 10 percent this year, following a 7,6 percent decline in 2023 as the global market is battling with volatile prices for most metals.
This comes as mining, a key driver of Zimbabwe's economy, faces a challenging outlook due to predicted depression in global commodity prices, except gold, and persistent power cuts.
Gold, Zimbabwe's single largest export, has maintained a bullish run amid uncertain global economic trends, cloaking record highs this year.
Delta said Zimbabwe's economy will also be impacted by reduced agricultural output following El Nino-induced drought in the 2023-2024 summer cropping season.
El Nino induced drought is expected to adversely affect the performance of the domestic economy.
However, Delta said, the negative impacts would be offset by the increased mining output and resilient remittances sent back from the country's diaspora population.
"There are, however, headwinds in the global economy, arising from the Russia/Ukraine conflict, the resurgent unrest in the Middle East, and the volatility of international financial markets," according to Delta.
Delta said consumer spending across the territories had proven to be resilient, presenting avenues for growth.
Operationally, Delta reported revenue of US$768 million for the 2024 financial year, reflecting a 43 percent growth compared to the previous year.
The group's operating income reached US$152 million, representing a 53 percent increase from the prior year's level.
