adminDelta Corporation reported a drop in operating income and subsequently margins in the half year to September reflective of the changing sales mix which was mitigated by efficiency improvements and cost control.
Revenue which was down 4 percent to $291,47 million for the half year reflected these changes in the mix, according to CEO Mr Pearson Gowero at an analysts briefing yesterday.
Operating income was down 13 percent on a reported but 9 percent on a comparable basis after accounting for Mega Pak as an asset held for sale.
Mr Gowero said consumer spend on beverages has been flat in the six months due to the shifting between categories “but generally the trend is moving southwards. And we are under pressure to respond accordingly”.
Lager beer was down 25 percent on prior year. The group said it is still engaged with the fiscal authorities to reduce excise duty levels to augment the interventions implemented recently to address affordability.
Sparkling Beverages were down 9 percent. Alternative beverages were 16 percent ahead of last year. Sorghum beer was up 14 percent driven by affordability. Chibuku Super has been rolled out nationally and is driving overall category performance
Online Reporter