Delta revenue drops 10%

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BEVERAGE maker Delta Corporation’s revenue for the third quarter to December 2014 was down by 10% due to a trading environment that remained difficult as reflected by the subdued consumer spending during the traditional holiday peak period, the company announced yesterday.

BEVERAGE maker Delta Corporation’s revenue for the third quarter to December 2014 was down by 10% due to a trading environment that remained difficult as reflected by the subdued consumer spending during the traditional holiday peak period, the company announced yesterday. OWN CORRESPONDENT

The group said all its beverage categories, except Maheu, recorded some volume decline in the quarter.

The lager beer volume was 9% below the 2013 volumes for the quarter and down 20% for the nine months, indicating some slowdown in the rate of decline compared to the preceding quarter, Delta said in its trading update for the quarter ended December 31 2014.

Chibuku Super
The group said there was an under supply of the Chibuku Super on account of constrained brewing capacity and utility outages.

“This is partly due to interventions on affordability implemented at the beginning of the quarter. Further price adjustments were effected at the beginning of January 2015 to reflect the reduction in excise duty from 45% to 40% of the producer price,” it said.

Soft drinks volume comprising both sparkling and alternative beverages was down 5% for the quarter and 6% below 2013 volumes for the nine months. The Maheu and dairy mix beverages recorded a growth of 8% in the quarter.

Sorghum beer volume was down 1% for the quarter, but 8% above the 2014 volumes for the nine months.

The group said there was an under supply of the Chibuku Super on account of constrained brewing capacity and utility outages.

“Additional capacity is expected to come on stream by mid-year 2015.

Losses in economies of scale and changes in the sales mix will have a bearing on the financial performance,” the trading update said.