Harare - Delta Corporation, the Zimbabwe-based unit of SABMiller
[JSE:SAB], reported a 21% decline in lager beer volumes for the first
quarter to June 2014, the company said.
Delta Corporation is Zimbabwe's largest listed company with a market
capitalisation of $1.55bn, and is 38% owned by global brewing giant
SABMiller.
In a trading update
released on Wednesday, the company said performance in the period under
review had been affected by the slowdown in consumer spending and
economic activity.
Sparkling beverages were down 8%, but total beverages volumes for the quarter were up 1% on the prior year.
Overall
volumes were, however, sustained by growth in sorghum beer and
alternative beverages as consumers downgrade from lager to cheaper
traditional beers.
“The sorghum beer category continues to record
growth, up 15% for the quarter spurred by the investment in increased
Chibuku Super production capacity.
“Alternative Maheu are up 22%
on prior year for the quarter, with some encouraging uptake in the new
dairy mix and drinking yoghurt beverages,” said the company.
Revenue for the period was down 3%.
Analysts said the update was not surprising, as Zimbabwean consumers are hard pressed for cash.
Zimbabwean businesses are struggling with high operational costs and
debt, competition from cheaper imports and electricity shortages.
The
economic environment continues to look dire for Zimbabwe, with the
country failing to meet its revenue targets for the first half of the
year.
The Zimbabwe Revenue Authority missed its first-half
revenue collection target, reflective of the underlying economic
environment.
Net revenue collections for the
first half of 2014 amounted to $1.72bn against a target of $1.74bn,
resulting in a negative variance of 1%.
Most of the revenue was realised from VAT, individual tax and excise duty which contributed 26%, 25% and 14% respectively.
- Fin24
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