SABMiller’s Zimbabwe beverage manufacturer Delta Corporation reported a four percent decline in revenue to $576.6 million for the full year to March 2015 on depressed sales values and volumes from both its sparkling drinks and larger beers.
SABMiller owns about 40 percent of Delta, whose $1.3 billion market capitalisation makes it the biggest stock on Zimbabwe’s stock exchange.
Delta’s financial results, released today, showed operating income decreased by 14 percent to US$111.1 million in the year.
Lager beer volumes were down 17 percent on prior year while soft drinks volumes, comprising both sparkling and alternative beverages, slumped six percent on prior year.
In its audited financial results for the year ending 31 March, the company reported that the rate of decline in sales volume and value had decelerated in the last half of the year following price reductions that improved affordability.
The company said an excise duty rate reduction from 45 percent to 40 percent by government as from 1 January 2015 helped stem the rate of declining demand.
“We remain engaged with the fiscal authorities on the need to continually review excise duty to regional benchmarks in order to restore competitiveness.”
Sorghum beer sales were up eight percent on prior year driven by Chibuku Super with the brand attaining a 50 percent contribution by March 2015.
The maheu and dairy mix beverages were up 11 percent in the year with the category expected to benefit from the additional production capacity commissioned in October 2014.
EBITDA Decreased by 10 percent to $ 143.2 million
Earnings per share Decreased by 13 percent to 7.44 cents.- The Source