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Cash crunch dents revenue at SABMiller's Zim unit

Harare - Limited access to cash by consumers, a poor agricultural season and the generally weak macro-economic performance saw SABMiller's [JSE:SAB] Zimbabwean associate Delta Corporation report an 11% decline in revenue for the quarter ended June 30 2016.

In a trading update released on Wednesday, the company said the revenue drop reflects "both weak demand and changes to the mix of the products within its portfolio".

During the period under review lager beer volume was 14% below the prior year, while sparkling beverages were down 9% for the same period.

Depressed disposable incomes continue to drive consumers towards value for money brands and packs, including sorghum beer, where volume is 9% up for the quarter.

Meanwhile, the continued deterioration of fundamentals has seen interest in Zimbabwe Stock Exchange -listed stocks wane, with the equities market recording its lowest one-day turnover for the year.

The ZSE's turnover on Wednesday was just above $16 000, the lowest for the year to date.

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