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Harare - Delta Corporation, the Zimbabwe-based unit of SABMiller [JSE:SAB], will report an 18% decline in full-year 2014 lager beer volumes, the company has said.
Lager beer volumes will be down 18%, having dropped by 26% in the last quarter to March 2014.
In a trading update released on Thursday, the company said performance in the period under review had been affected by the slowdown in consumer spending and economic activity.
The group added that the fourth quarter to March was characterised by rapidly softening demand and the impact of high consumer prices driven by the high levels of excise duties.
Analysts said the update was not surprising, as Zimbabwean consumers are hard pressed for cash.
Disposable incomes in Zimbabwe have been on a persistent decline as some companies close, while others retrench.
Consumers are also heavily in debt, resulting in some receiving zero net salaries after meeting their debt obligations.
The economic environment continues to look dire for Zimbabwe, with the country failing to meet its revenue targets for the month of February 2014.
In a monthly state of the economy statement released on April 2, Finance Minister Patrick Chinamasa said total revenue collections for the month of February stood at US$248m against a target of $273.26m, resulting in a negative variance of $25.3m.
- Fin24
Lager beer volumes will be down 18%, having dropped by 26% in the last quarter to March 2014.
In a trading update released on Thursday, the company said performance in the period under review had been affected by the slowdown in consumer spending and economic activity.
The group added that the fourth quarter to March was characterised by rapidly softening demand and the impact of high consumer prices driven by the high levels of excise duties.
Analysts said the update was not surprising, as Zimbabwean consumers are hard pressed for cash.
Disposable incomes in Zimbabwe have been on a persistent decline as some companies close, while others retrench.
Consumers are also heavily in debt, resulting in some receiving zero net salaries after meeting their debt obligations.
The economic environment continues to look dire for Zimbabwe, with the country failing to meet its revenue targets for the month of February 2014.
In a monthly state of the economy statement released on April 2, Finance Minister Patrick Chinamasa said total revenue collections for the month of February stood at US$248m against a target of $273.26m, resulting in a negative variance of $25.3m.
- Fin24
