Delta revenue dips as lager volumes drop 14pct in Q3

Delta revenue dips as lager volumes drop 14pct in Q3

HARARE, January 18 (The Source) — Delta Corporation on Monday reported a seven percent decline in revenue in the nine months to December last year with lager volumes falling similarly as consumers migrated to cheaper alternatives.

Lager beer volume registered a six percent decline over the nine months and 14 percent in the three months to December despite it being the festive period, which the group attributed to  a consumer shift to cheaper alcohol categories.

“The group reports a generally subdued volume and revenue performance for the period. This is attributed to the depressed aggregate demand,” Delta said in a trading update.

Sparkling beverages volume was flat on prior year for the quarter and down nine percent for the nine months.

“There was some increase in demand driven by the high temperatures experienced in the period. The alternative beverages (Maheu and diary mix beverages) recorded a decline of seven percent for the quarter compared to prior year, mainly due to a supply challenge in November. The alternative beverages category is five months below prior year for nine months,” said Delta.

The sorghum beer volume was flat on prior year for the quarter and down eight percent for the nine months, the company said.

“The category continues to benefit from consumers drifting from other alcohol alternatives and the increased output of Chibuku Super, which remains in short supply,” it added.

Going forward, the company said it will continue to implement strategies to retain consumers within its portfolio.