Delta Q1 revenue up 2pct on increased volumes

Delta Q1 revenue up 2pct on increased volumes

HARARE, July 20 (The Source) – Beverage giant Delta Corporation on Thursday reported a two percent increase in revenue for the first quarter to June 30 relative to the comparable period last year driven by volume growth in most segments.

The company attributed the increased volumes to improved consumer demand for its products.

“We report a positive volume outturn which is attributable to improved consumer spending arising from a better agricultural season and bedding down of electronic payment platforms in settling transactions,” the company said in a statement.

Delta said lager beer volume increased by 12 percent above the same period last year on strong recovery of its value brands.

The company said the soft drinks category was up 3 percent after both sparkling beverages and Maheu registered growth.

However, the company said imports continue to put pressure on the sparkling beverages.

“There is still a prevalence of imports of sparkling beverages from regional markets due to price and import duty disparities,” the company said.

Sorghum beer volumes declined by 5 percent while Chibuku Super rose 9 percent in the period.

Delta, now an associate of Belgian brewer, AB InBev following the later’s acquisition of SABMiller last year, said it was still engaged in talks with The Coca-Cola Company (TCCC) over its intention to terminate the Bottlers Agreements with the group.

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