No Christmas cheer for Delta as Q3 revenue declines five percent

No Christmas cheer for Delta as Q3 revenue declines five percent
Delta Corporation is the largest beverages manufacturer in Zimbabwe. Picture: THE SOURCE

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

DELTA’S revenue for the third quarter to December was down five percent as the group reported generally subdued volumes across its units. Subsequently revenue for the nine months was down seven percent.

According to Delta’s third quarter trading update the decline in the revenue reflects changes in the portfolio mix and price moderations during the year as aggregate demand remains depressed.

Lager beer volume declined 14 percent reversing the recovery experienced in the September quarter, in spite of it being the festive season. The majority of civil servants, the sector with most workers only received their December salaries this month. In the September quarter lager beer rose five percent after price adjustments stimulated volume. In the nine months lagers were down six percent as consumers continue to shift to cheaper alcohol categories such as Eagle beer.

Delta said 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 segment is also being affected by the influx of lower priced imports.

Alternative beverages were down seven percent for the quarter and five percent in the nine months mainly because of a supply challenge experienced in November.

Sorghum beer volume was flat on prior year for the quarter and down eight percent for the nine months.

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

Delta said it will continue to implement strategies to retain consumers within its portfolio. FinX

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