Delta Q3 revenue down…festive season volumes lower on weakening economy

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BEVERAGE manufacture Delta Corporation registered a 5% decline in revenue for the quarter ending December 2015 compared to the preceding quarter on weakening lager beer volumes, the company said as consumer patterns shifted.

Aggregate demand weakened on the back of a faltering economy that saw government twice revising growth projections. Zimbabwe’s economy is this year registering a 2,7% economic growth from a modest 1,5% this year.

”The Group reports a generally subdued volume and revenue performance for the period. This is attributed to the depressed aggregate demand. Lager beer volume declined by 14% compared to prior year for the quarter reversing the nascent recovery in the previous quarter. The volume is down 6% for the nine months to December 2015. The consumers continue to shift to cheaper alcohol categories,” the company said in a trading update.

“Group revenue is down 5% for the quarter and is down 7% for the nine months, re¬flecting changes in the portfolio mix and price moderations during the year. The company will continue to implement strategies to retain consumers within its portfolio.”

Sparkling beverages volume was fl¬at on prior year for the quarter and down 9% for the nine months, the company said.

“The alternative beverages (Maheu and dairy mix beverages) recorded a decline of 7% for the quarter compared to prior year, mainly due to a supply challenge in November. The alternative beverages category is 5% below prior year for the nine months,” the company said.

Sorghum beer volume, the company said was ¬flat on prior year for the quarter and down 8% for the nine months.

The category continues to benefit from consumers drifting from other alcohol alternatives and the increased output of Chibuku Super, which remains in short supply. –Staff Writer

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