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Oliver Kazunga Acting Business Editor
BEVERAGES manufacturer Delta Corporation says its revenue for the quarter ending December 31, 2014 was down 10 percent on the back of weakening demand for its product mix. In a trading update yesterday, the company said this was caused by the underperforming economy. “The trading environment remains difficult as reflected by the subdued consumer spending during the traditional holiday peak period.
“The decline is anticipated to end following the government’s decision to reduce excise duty on lager beers from 45 percent to 40 percent with effect from the beginning of this month.
“All our beverage categories, except Maheu, recorded some volume decline in the quarter.
“The lager beer volume is 9 percent below prior year for the quarter and down 20 percent for the nine months, indicating some slowdown in the rate of decline compared to the preceding quarter,” said the company.
“Revenue is down 10 percent and six percent for the quarter and the nine months period, respectively.
“The losses in economies of scale and the changes in the sales mix will have a bearing on the financial performance.”
The company said soft drink volumes during the period under review were also down five percent while sorghum beer, which lately had been a driver of volumes, was marginally down one percent due to constrained brewing capacity and utility outages.
Online Reporter