Delta rev­enue tum­bles 8pc

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga

LISTED bev­er­ages com­pany, Delta Cor­po­ra­tion, has recorded an eight per­cent drop in rev­enue for the sec­ond quar­ter ended Septem­ber 30, 2016 on the back of weak vol­umes and de­pressed con­sumer de­mand.

Low dis­pos­able in­comes cou­pled with the con­tin­u­ing loss of jobs and de­lays in pay­ment as well as pre­vail­ing cash short­ages across the coun­try have gen­er­ally crip­pled spend­ing pat­terns on many prod­ucts, sur­veys have shown.

In an up­date, the listed firm said yes­ter­day that the trad­ing en­vi­ron­ment con­tin­ues to be con­strained by de­pressed con­sumer spend­ing, lim­ited ac­cess to cash and the gen­er­ally weak macro-eco­nomic per­for­mance.

“Trad­ing pat­terns re­main in­con­sis­tent. The short­ages of for­eign cur­rency re­sulted in re­duced im­por­ta­tion of con­sumer goods lead­ing to an in­crease in de­mand for some of our prod­uct lines,” it said.

The cor­po­ra­tion also said it was faced with pro­duc­tion dis­rup­tions due to an emerg­ing risk on wa­ter sup­ply as a re­sult of de­pleted dam and ground­wa­ter sources.

“Rev­enue is six per­cent down for the quar­ter and down eight per­cent for the six months, which is in line with the changes in prod­uct mix and pric­ing de­ci­sions.

“Lager beer vol­ume is seven per­cent be­low prior year for the quar­ter and 11 per­cent down for the six months,” it said.

How­ever, sparkling bev­er­ages vol­umes were up by three per­cent for the quar­ter and down by three per­cent again in the six months to Septem­ber.

Mean­while, sorghum beer vol­umes in­creased by four per­cent in the quar­ter and six per­cent for the six months.

“The con­tri­bu­tion of Chibuku Su­per re­mains strong. The de­lays in pay­ments to for­eign sup­plies re­sulted in the late com­mis­sion­ing of the new plants at Masvingo and Kwekwe, which are now ex­pected to con­trib­ute to pro­duc­tion be­fore the end of the calendar year,” it said.

Re­cently, Delta said it an­tic­i­pated no changes to its re­la­tion­ship with its new share­hold­ers after reg­u­la­tors ap­proved prin­ci­pal owner, SABMiller’s takeover by Bel­gium-based brewer, AB InBev.

SABMiller owns 38 per­cent Zim­babwe as­so­ciate.

How­ever, the share­hold­ers ap­proved the takeover by An­heuser-Busch InBev last Septem­ber for $104 bil­lion in one of the largest cor­po­rate deals in his­tory. — @okazunga of the

Delta Cor­po­ra­tion has recorded an eight per­cent drop in rev­enue

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