Delta revenue drops

Delta Corporation saw its revenues dipping 6% in the fourth quarter ended March 31, 2016, attributed to a shift to alternatives and the influx of cheap foreign products on the depreciation of regional currencies.

In a trading update, Delta said the group’s volume and revenue performance largely mirrors the subdued economic activity during the period.

“There is some infiltration of products from adjacent markets due to the weaker regional currencies. Consumers continue to shift towards affordable brands,” it said.

Delta said the dip in revenue and volume reflected changes in the “portfolio mix and price moderations during the year”. Lager beer volume was 12% below prior year for the quarter and down 8% for the full year.

Delta said it would continue reviewing the competitiveness of its offerings. Sparkling beverages volume increased by 6% above prior year for the quarter and declined 6% for the full year.

“The alternative beverages volume (maheu and dairy mix beverages) grew 9% for the quarter compared to prior year, and is 2% down for the full year.

The sorghum beer volume was 15% up on prior year for the quarter and down 3% for the full year.

“The current growth is partly due to the favourable pricing on the standard Chibuku offering and the improved availability of Chibuku Super,” Delta said.

Delta has been investing heavily in Chibuku due to increased demand.

In February, Delta announced it was upgrading its Masvingo and Kwekwe breweries at an estimated cost of $26 million to increase the production of the Chibuku Super brand. 

The increase in production will be realised by the fourth quarter of 2016, it said.The supply of Chibuku Super has lagged behind demand since the brand was introduced to the market in 2012.

Source: Newsday