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Delta reports 11% drop in first quarter revenues

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HARARE


Slow consumer spending due mainly to limited access to cash and generally weak macro-economic performance saw Delta Corporation’s revenue fall 11% in the first quarter.

In its trading update for the three months to June, Delta said revenue and volume performance had been impacted by marked changes in the trading environment.

“Consumer spending has been affected by the limited access to cash, a poor agricultural season and the generally weak macro-economic performance.  Revenue is down 11% for the quarter, reflecting both weak demand and changes to the mix of the products within our portfolio,” noted Delta.

Lager beer volume was down 14% below the comparable year ago period while Sparkling Beverages are down 9%.  “The depressed disposable incomes continue to drive consumers towards value for money brands and packs.” As a result, Sorghum beer volume was up 9% with the SBU also seeing improved availability of Chibuku Super. The group is set to commission new Chibuku Super plants in Masvingo and Kwekwe at a cost of $30 mln.

Delta noted that in the period, the retail price of Maheu was increased to take into account the input tax that is no longer claimable as the product category was changed from zero-rated to exempt status for value added tax purposes.

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