Delta revenue down eight percent in H1
DELTA Corporation reported a mixed performance in its beverage categories for the second quarter to September.
In a trading update on Tuesday, the group said lager beer volume is five percent up on prior year for the quarter, mainly driven by the economy segment. Total volume is down two percent for the six months.
The group said post the half year, further price adjustments were implemented to stimulate volume with particular focus on core lager which remains in decline. The price of pint and quart packs declined to 80c from 90c and US$1,50 from US$1,55 respectively. All other brands and pack prices remained unchanged
Sparkling beverages are down 14 percent compared to the same quarter last year and down 15 percent for the six months. “This is partly due to increased competition particularly from imported lower priced alternative offerings,” said Delta.
The Maheu and dairy mix beverages recorded a growth of four percent for the quarter on the back of improved product supply and the expansion of flavours.
The sorghum beer category recorded a volume decline of 12 percent for both the quarter and the six months. There is a marked shift to Chibuku Super which benefited from the additional production capacity from the Fairbridge Brewery.
The group said revenue is down six percent for the quarter and down eight percent for the six months, reflecting changes in the portfolio mix and the recent price moderations. “In the short term, there will be pressure on operating margins as we adopt strategies to address affordability and stimulate volume through price reductions and streamlining value chain costs. The benefits of these initiatives should start filtering through in the medium term.” FinX