adminIn a trade update for the three quarters to December 2012 SABMiller said lager beer volumes growth for its Zimbabwean operations moderated to 5 percent after a price increase that was necessitated by the excise duty increase.
“Lager volume growth moderated to 5 percent in Zimbabwe following a price increase taken in the quarter as a result of an unanticipated excise increase,” said intercontinental brewer SABMiller in the trade update statement released yesterday.
Finance Minister Tendai Biti increased duty on clear beer and cigarettes when he presented the 2013 national budget in November last year.
Excise duty on clear beer was increased from 40 percent to 45 percent, while the duty on cigarettes went up from $10 per 1 000 sticks to $15 with effect from 1 December 2012.
Minister Biti said the move was meant to protect consumers from taking the “hazardous products” and reduce social costs associated with beer and cigarettes.
Last week Delta published a trading update for the quarter ending 31 December 2012 saying revenue for the quarter October to December was up 14 percent and 16 percent year to date supported by improved mix and minimal price increases.
Lager beer volumes for the third quarter were 5 percent ahead of prior year and 7 percent up for the nine months to December 2012 while sparkling beverages volumes are up 8 percent for the quarter and 10 percent for the nine months.
Sorghum beer volumes went down by 10 percent for the quarter and 9 percent for the nine months, a trend consistent with that for the first half of the year.
The increase in Excise Duty to 45 percent from 40 percent was said to have been disruptive on both volumes and retail pricing due to lack of small denomination coinage.
The impact on business, said Delta, is expected to be minimal.
Reporting the group results yesterday SABMiller said lager volumes for the third quarter were 2 percent ahead of the prior year and soft drinks volumes were 3 percent higher, both on an organic basis.
Group revenue grew by 8 percent in the third quarter and group revenue per hectolitre was up by 5 percent, both on an organic constant currency basis, reflecting selective price increases and helped by improved brand mix in most regions.
“On a reported basis, including the effect of acquisitions and disposals, total volumes were up 6 percent and group revenue was up 17 percent compared with the third quarter of the prior year. Overall, financial performance for the quarter (to December 2012) was in line with our expectations,” said SABMiller in the update statement.
Lager beer volumes growth of 10 percent in Zambia continued to benefit from improved availability and distribution networks, further supported by the operation of the new brewhouse at Ndola from November 2012.
Uganda returned to growth this quarter with lager volumes up 4 percent despite a slower economy.
In Mozambique the affordable and mainstream segments continued to perform well helping deliver lager volume growth of 9 percent.
In Ghana, volumes grew by 9 percent driven by a strong performance by the Club brand while South Sudan continued to grow strongly while SABMiller associate Castel delivered lager volume growth of 5 percent on a pro forma basis.
Soft drinks grew by 12 percent on an organic basis assisted by strong performances in Nigeria, Zambia and Ghana.
But SABMiller said Tanzania volumes continue to decline, down 13 percent for the quarter, following the excise related pricing.
Online Reporter