Delta registers remarkable revenue increment in USD

Leafias Mazviro

The Delta Corporation Limited has registered 10 percent revenue increase in US Dollars terms in the first quarter of 2023 ended June 30 despite operating in a rapid changes in policy environment and currency volatility across regional markets.

In a group’s trading update, the group said its revenue grew by 163% for the quarter in inflation adjusted terms compared to a growth of 929% in historical cost terms, driven by the growth in volume.

“The revenue in US Dollar terms grew by 10% over prior year. The Zimbabwean entities continue to generate sufficient foreign currency through domestic sales with average collections of over 80%, which reflects the con- strained ZW$ liquidity and trading challenges affecting formal sector Outlets,” it said.

However, group said the first quarter was characterised by rapid changes in the policy environment in Zimbabwe and currency volatility across the regional markets.

“Zimbabwe is in the election season running up to harmonised elections scheduled for 23 August 2023.

The exchange rate volatility, coupled with fluctuations in market liquidity in both foreign currency and ZW$, continue to create challenges for the formal sectors of the economy, particularly as it relates to the pricing of goods and trading terms.”

The company said there has been a general increase in the use of foreign currency for domestic transactions.

“Consumer spending remains firm, being buoyed by diaspora remittances, Government spending on infrastructure projects, mining and agricultural activities and the more stable pricing in US Dollars.

The current quarter also benefited from the improved marketing of tobacco.”

In addition, Delta said the performance of the South African economy remains muted, indicating pressure on disposable incomes arising from a weaker Rand and the impacts of power supply disruptions.

“In Zambia, the macro-economic environment remains stable although consumer demand remains low.

The Kwacha depreciated during the quarter but has recovered in the aftermath of the positive resolution of the country debt scheduling discussions with the international lenders.

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