By ETimes
HARARE – DELTA Corporation is trading at lower valuation multiples than several African beverage peers, according to a comparative analysis published in the prospectus of Ghanaian drinks manufacturer Kasapreko PLC ahead of its planned stock market listing.
The analysis showed Delta trading at an enterprise value-to-EBITDA multiple of 2.0 times and a price-to-earnings ratio of 3.1 times based on projected 2026 earnings, the lowest among a basket of regional beverage companies reviewed by Kasapreko and its advisers.
Regional counterparts were valued more highly, with Kenya’s East African Breweries trading at 5.9 times EV/EBITDA and 12.5 times P/E, while Nigeria’s Nigerian Breweries traded at 7.3 times EV/EBITDA and 13.1 times P/E. Morocco-based Société des Boissons du Maroc recorded the highest multiples in the peer group at 9.0 times EV/EBITDA and 21.6 times earnings.
Kasapreko, which is seeking to raise up to 700 million Ghanaian cedis (US$62.2 million) through an initial public offering, said its own implied valuation stood at 5.4 times EV/EBITDA and 11.3 times P/E, below the peer group averages of 6.9 times and 14.8 times respectively.
Analysts said Delta’s comparatively low valuation could partly reflect investor caution over Zimbabwe’s volatile currency environment and broader macroeconomic risks.
However, the company remains one of Zimbabwe’s strongest consumer businesses, benefiting from a dominant market share, strong cash generation and an extensive distribution network.
The Kasapreko prospectus said the valuation exercise used discounted cash flow analysis, trading comparables and precedent transactions to determine its offer price.
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