By Almot Maqolo.
Harare, Zimbabwe. (News Of The South) – Leading beverages manufacturer, Delta Corporation revenue for the fourth quarter ended March 31, 2017 went down by 15 percent compared to the previous quarter as volumes and demand declines.
The suppressed demand and shortages caused by water supply disruptions saw the company’s revenues plunging to 10 percent as of the third quarter ended December 31, last year.
The group said it will release its full-year financial results on May 11 this year.
“The 4th quarter recorded a particularly depressed volume and revenue outturn. In addition to the constrained aggregate demand, the outturn was impacted negatively by heavy rains that reduced market access and outdoor consumption occasions,” Delta said in a trading update.
“The pronounced shortages of bank notes and limited availability of alternative payment platforms also affected demand.”
During the period under review, lager beer beverages volume fell down to 5 percent for the quarter and down 7 percent for the full year.
Sparkling beverages volume declined to 24 percent for the quarter and was 11 percent below prior year in the full year.
“There was a marked increase in imports of soft drinks mainly from Zambia and Mozambique in the second half of the year,” it said.
The company’s sales for the sorghum beer was 17 percent down for the quarter and down 3 percent in the full year.
“The inaccessibility of certain markets was more pronounced in this category particularly in the Southern half of the country,” it said.
Albeit the depressed volume and revenue outturn for the company, the supply of Chibuku Super has “stabilised” following the commissioning of the new plants at Masvingo and Kwekwe.
The Kwekwe plant was commissioned in December. Meanwhile, the company expects to release an update on The Coca-Cola Company’s move to terminate Bottler’s Agreements with the group in the
full year results.
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