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DELTA Corp, the country’s largest listed company says revenue for the full year to March 2015 declined 6 percent due to the decline in sales volumes for lagers and soft drinks. But the company sees improved demand across its product portfolio following price cuts, Delta said in a trading update yesterday. In the last quarter, turnover was 5 percent lower compared to the same period last year as consumer spending softened.
The lager beer volume declined by 3 percent during the last quarter and 17 percent in the full year, reflecting deceleration in the rate of decline compared to the preceding nine months.
The soft drinks volumes comprising sparkling and alternative beverages were down 5 percent and 6 percent for the quarter and the full year respectively, the company said.
“We report a mixed performance across the beverage categories in an environment of a contracting economy,” said Delta.
“This is characterised by constrained consumer spending, declining local manufacturing capacity and weakening regional currencies which encourages imports.”
With the general global economy outlook indicating that the US is performing well, the situation has led to the appreciation of the US dollar against major currencies, which include the SA Rand.
Online Reporter