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Delta volumes stagnate

News
Delta Corporation expects beverage volumes to remain flat despite a growth in lager, sparkling and maheu in the year ended March 2013.

ZIMBABWE Stock Exchange-listed industrial concern Delta Corporation expects beverage volumes to remain flat despite a growth in lager, sparkling and maheu in the year ended March 2013.

Business Reporter

In a trading update yesterday, Delta said the full year lager beer volumes were 4% ahead of the prior year, but down 6% in the last quarter.

“Total beverage volumes closed the year flat on prior year as the growth in lager beer, sparkling beverages and maheu was offset by the decline in sorghum beer. There was a noticeable showdown in consumer spending in the quarter ending March 2013,” said Delta.

“The decline is partly attributable to the adverse impact of the excise duty increase in December 2012 and the resultant disruption to retail pricing.”

Finance minster Tendai Biti last year increased excise duty for lagers to 45% from 40%.

The rate, according to Biti, had not been reviewed since January 2004, in order to allow ample time for business to reinvest in a new plant and equipment.

Delta said sparkling beverages volumes were 9% during the year under review and 7% in the last quarter.

Sorghum beer 8% and 6% for the year and fourth quarter respectively. “The overal financial performance for the year is inline with our expectations.”

Revenue for the group increased 36% to $554,8 million  for the full year ended March 2012. Delta is due to publish its financial results for the full year to March 2013 next month.