HARARE, (The Source) – Beverage giant Delta Corporation on Thursday reported a 15 percent drop in revenue for the fourth quarter to March 31 compared to the previous quarter as demand continues to fall.
The company said it will release its full-year financial results on May 11, but figures show its annual revenue coming in lower by 10 percent from the $538,2 million last year.
“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 statement.
Zimbabwe’s current cash crisis and limited availability of alternative payment platforms also negatively impacted demand, it added.
Lager beer beverages volumes fell 24 percent in the quarter and down 7 percent for the full year.
Sparkling beverages volumes dropped similarly for the quarter and 11 percent in the full-year under pressure from imports.
“There was a marked increase in imports of soft drinks mainly from Zambia and Mozambique in the second half of the year,” said Delta.
Sales of the sorghum beer fell down 17 percent for the quarter and three percent for the full-year on distribution challenges.
“The inaccessibility of certain markets was more pronounced in this category, particularly in the Southern half of the country,” said Delta.
However, the supply of Chibuku Super has stabilised following the commision of the new plants at Masvingo and Kwekwe.
The group expects to release an update on the The Coca-Cola Company’s move to terminate Bottler’s Agreements with the group in the full-year results.