Listed beverage manufacturer, Delta Corporation has seen its annual revenue fall by 10%, with all its products’ volumes softening due to cash shortages and limited alternative payment platforms.
BY FIDELITY MHLANGA
The group’s revenue tumbled 15% and 10% for the quarter and the full year respectively, Delta said in a trading update released yesterday.
Lager beer volume fell 5% below the prior year for the quarter and down 7% for the full year.
“The fourth quarter that ended March 31, 2017 recorded a particularly depressed volume and revenue outturn. In addition to the constrained aggregate demand, the outturn was impacted negatively by heavy rains that reduced market access and outdoor consumption occasions. The pronounced shortages of bank notes and limited availability of alternative payment platforms also affected demand,” the company said.
Sparkling beverages volume was down 24% for the quarter and 11% below prior year for the full year. There was a marked increase in imports of soft drinks mainly from Zambia and Mozambique in the second half of the year, Delta said.
The sorghum beer volume was 17% down on prior year for the quarter and down 3% for the full year.
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“The inaccessibility of certain markets was more pronounced in this category, particularly in the southern half of the country. The supply of Chibuku Super has stabilised following the commissioning of the new plants at Masvingo and Kwekwe,” the company said.
