adminabove 1,7 million hectolitres
All beverage categories except lager beer registered volume growth. Soft drinks grew 13 percent to 374 000 hectolitres while sorghum beer rose 6 percent 846 000 hectolitres. The company said the recently commissioned Chibuku Super plant was now running at full capacity.
Volumes for Maheu jumped 80 percent to 36 000 hectolitres. Lager volumes, however, contracted by 8 percent to 463 000 hectolitres.
The lager beer volumes performance was negatively impacted by the significantly higher than recommended retail prices in the general trade occasioned by the hike in excise duty in December 2012 and lack of adequate coins on the local market. The overall financial performance was in line with management expectations.
“The trading environment has been characterised by uneven consumer demand. We see some provinces such as the Midlands, Masvingo and Mashonaland East showing very good growth in volumes while provinces like Manicaland, Matabeleland and part of Mashonaland West are regressing,” chief executive Mr Pearson Gowero told shareholders at an annual general meeting yesterday.
Delta said volume growth will be dependent on Gross Domestic Product and socio-economic environment particularly post the harmonised elections to be held next Wednesday.
Earnings growth will be positive reflecting both cost efficiency and product mix, more reflective of a hard currency environment. Capital expenditure will be targeted within 30 to 50 percent of earnings before interests, taxes, depreciation and amortisation.
A dividend cover of 2,5 times to be maintained. EBITDA margins are expected to gradually improve to range between 26 percent and 30 percent in the long term.
The trading environment during the first quarter was characterised by softening demand and liquidity constraints.
“There is general under-performance of agriculture although tobacco is an exception,” said Mr Gowero.
“This has the impact of reducing household income, We have also seen that consumers have become a lot more conscious of real value of the US dollar hence more price sensitive.”
Delta has a dominant position commanding approximately 96 percent of the beer market and about 92 percent of the sparkling beverages.
Online Reporter