ZIMBABWE’S largest beverage manufacturer Delta Corporation (Delta)’s revenue for the half year ended September 30 2014 fell 4% owing to a 5% fall in gross sales in the second quarter of the year, the company has said.
In a trading update for the second quarter of the year ended September 30, Delta said the decline in revenue reflects changes in sales and product mix in favour of value propositions.
“The general economic performance remains depressed with significant pressure on consumer disposable incomes,” said Delta.
“This will have a bearing on the financial performance.”
Total beverage volume went down 3% and 1% on prior year for the quarter and six months respectively mainly driven by growth in the sorghum beer sales.
“The sorghum beer category continues to record growth, up 12% for the quarter and 14% above prior year for the six months,” said the company.
Delta said Chibuku Super has been rolled out nationally and driving overall category performance of sorghum beer volumes.
Last year, Delta commissioned a US$6,5 million carbonated sorghum beer plant with capacity to contribute US$10 million in annual revenues at a capacity of 12 million litres of beer per year full capacity.
Lager beer volumes for the quarter slid 29% from the comparative period in 2013 and 25% in the six months compared to 2013.
“The excise duty increase effected in December 2012 has continued to limit the affordability of our products,” the company said.
Soft drinks, which comprise sparkling and alternative beverages, volumes went down 8% for the quarter and 6% below prior year for the six months. However, the Maheu and new dairy mix continue to record growth.