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Charity Ruzvidzo Business Reporter
BEVERAGES manufacturer Delta Corporation’s revenue has dropped five percent as of end of last month triggered by the declining production volumes in the wake of depressed economic performance.
The company’s trade update for the second quarter ended September 30, 2014 indicates that declining consumer disposable incomes fuelled the slump.
“Revenue is down five percent for the quarter and down four percent for the six months, reflecting the notable changes in sales and product mix in favour of value propositions. This will have a bearing on the financial performance,” the company said in a statement yesterday.
“The total beverages volume is down three percent and one percent on prior year for the quarter and six months respectively.
“The lager beer volume is 29 percent below prior year for the quarter and down 25 percent for the six months.”
The soft drinks volumes comprising both sparkling and alternative beverages also nose-dived eight percent during the quarter and six percent below prior year for the six months.
However, the sorghum beer category grew 12 percent for the quarter and 14 percent above prior year for the six months.
The Maheu and dairy mix beverages also maintained a growth direction.
The company said interventions to stimulate volume growth and value were being implemented and cited concern over excise duty increase effected in December 2012 as having a limiting effect on the affordability of the firm’s products.
The Chibuku Super, the company reported, was driving the overall category performance.
Last month, Delta slashed beer prices across the whole portfolio except on pints in a bid to boost revenue.
The price of the Popular quart was reduced from $1.75 to $1.60 while the Eagle quart, which was retailing at $1.20, was reduced to $1.00.
The Magnum 660ml returnable bottle for Golden Pilsner, Zambezi Lager and Bohlingers were also reduced to $1.75 from $1.80.
The company is expected to publish its half year results next month.
Online Reporter