Delta Q1 revenue down, Chibuku Super now 50pct of volumes

Delta Q1 revenue down, Chibuku Super now 50pct of volumes

HARARE, April 14 (The Source) – Delta Corporation’s sorghum beer, Chibuku Super now contributes 50 percent of volumes sold by the Zimbabwe Stock Exchange-listed heavyweight, which reported a five percent decline in revenue for the quarter ending March as demand for beverages continues to fall on the back of an underperforming economy.

Delta, the largest counter on the local bourse, accounting for a third of market capitalization said lager beer volumes for the quarter were three percent and 17 percent lower for the full year, reflecting weakening demand.

“The sorghum beer volume is six percent up for the quarter and eight percent above prior year for the full year. The supply of Chibuku Super improved during the quarter, with the product attaining a contribution to total volume of about 50% by March 2015. The installation of the new production facility at Fairbridge in Bulawayo is on schedule for full commissioning by July 2015,” the company said in a trading update on Tuesday.

Soft drinks volumes, comprising both sparkling and alternative beverages are down five percent and six percent for the quarter and the full year, respectively, the company said.

“Revenue is down five percent for the quarter and six percent for the full year. The full year results will reflect some loss of financial leverage due to the changes in the sales mix and the deliberate strategies to preserve volumes,” said the company.

“This reflects a deceleration in the rate of decline compared to the preceding nine months. The price reductions implemented at the beginning of January 2015 have improved the affordability of our brands and should, over time, stem the volume decline.”