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DELTA Corporation’s revenue for the quarter to September 30 2015 declined 6 percent weighed down by depressed aggregate demand. In its latest trading up date, the beverages maker said revenue was also down 8 percent for the six months period to September 30. Delta contends that the decline in revenue for the six months, reflected changes in its portfolio mix and recent price moderations.
The brewer said the trading environment remains challenging due to depressed aggregate demand amid the low disposable incomes. “We report contrasting volume performances across our beverage categories for the second quarter,” Delta said in the update. The listed brewer recorded declines in a number of product lines with the biggest impact registered in the sparkling beverages segment.
The soft drinks fell 14 percent for the quarter to September 3015 and slid marginally higher at 15 percent for the six months period. “This was partly due to increased competition particularly from imported lower priced alternative offerings,” the beverages maker said. But maheu and dairy mix beverages recorded a 4 percent growth for the quarter on improved product supply and expanded flavours.
Lager beer volumes also grew 5 percent up on prior year for the quarter, driven by the economy segment and recent price adjustments, but total volumes fell 2 percent for the six months. In the short term, Delta said there will be pressure on margins as “we adopt strategies to address affordability and stimulate volume through price reductions and streamlining value chain costs. “The benefits of these initiatives should start filtering through in the medium term.”
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