LISTED beverages manufacturer, Delta Corporation has recorded a 2% revenue increase for the first quarter ended June 30, 2017 driven by growth in lager beer volumes, soft drinks and Chibuku Super.
By Staff Reporter
In a trading update yesterday, Delta Beverages said group revenue increased by 2% over the previous year, reflecting the changes in its product mix.
“We report a positive volume outturn which is attributable to improved consumer spending arising from a better agriculture season and the bedding down of electronic payment platforms in settling transactions.
“Lager beer volume grew 12% above prior year with stronger recovery in the value brands. The soft drinks category grew 3% over prior year, with both the sparkling beverages and maheu registering growth. There is still a prevalence of import duty disparities,” the trading update read.
The group also said the sorghum beer volume was 5% down on prior year with Chibuku Super growing by 9% in the quarter, adding that the market is still to strike a balance in the demand of the Chibuku and Chibuku Super.
However, Delta Beverages said they were currently trading under caution with respect to the notice received from The Coca-Cola Company (TCCC) advising of its intention to terminate the Bottler’s Agreements with the group entities following the merger of AB InBev and SABMiller and the joint statement by TCCC and AB InBev indicating an agreement in principle that TCCC will purchase AB InBev’s interests in bottling operations in various markets.
“Shareholders are reminded that the company is trading under a cautionary issued with respect to the notice still received from the Coca-Cola Company (TCCC) advising of an intention to terminate the bottlers’ agreements with the group entities.
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“This follows the merger of AB InBev and SABMiller PLc in October 2016 and the subsequent agreement in principle reached between TCCC and AB InBev to explore options to restructure the bottling operations in a number of countries. The relevant parties remain engaged in discussions and stakeholders will be updated on progress,” the statement read.
