Delta records decrease in clear beer sales

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DELTA Corporation Limited recorded increases in sorghum beer, maheu and dairy beverages during the full year ended March 2015 while lager beer and sparkling drink volumes were down.

BY VICTORIA MTOMBA

In a statement accompanying the group’s financial results, the company said the slowdown in the economy resulted in a very difficult trading year.

“Consumer spending declined significantly. The company continued to focus on taking measures to capture value and retain consumers in its portfolio of beverages while expanding and maintaining its facilities for future recovery. The weakening regional currencies have made this more challenging,” the company said.

Delta Corporation posted a profit after tax of $92,8 million for the full year ended March 31 2015 compared to $107 million same period last year. Revenue for the group was 4% down due to lower sales and volume in both lager beer and sparkling beverages.

“This was mitigated by significant increase in sorghum beer due to increased contribution of higher value Chibuku Super,” the company said.

”The supply of Chibuku Super improved in the last quarter of the year with the brand attaining a 50% contribution by March 2015. The new Chibuku Super production facility in Bulawayo is scheduled for commissioning by July 2015, which will assist in closing supply gaps.”

Sparkling and alternative beverages were down 6% compared to the prior year, while maheu and dairy mix beverages were up 11% for the year.

“This category is expected to benefit from the additional production capacity commissioned in October 2014, the refreshed Shumba Maheu packaging and the continued roll out of additional flavours,” the group said.

Operating income is down 14%, showing the changed mix in flavour of lower priced products and the impact of price reductions. Earnings before interest depreciation tax and amortisation was down 10% during the period under review compared to a decline of 14% in operating income.

Cash generated from operations was $7 million lower compared to the same period last year due to lower profitability and reduced creditors.

“The difficult economic conditions are forecast to continue. The company remains focused on delivering value to its stakeholders by optimising its operations and product innovations,” the company said.

1 COMMENT

  1. The quality of Delta’s clear beers that is, castle, lion, black label, pilsener, zambezi, bohlingers is so poor from the contents all the way to the pathetic packaging compared to their counterparts manufactured by SAAB.

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