Business / Companies
Delta's revenue drops 10%
19 Jan 2015 at 20:12hrs | Views
Delta's revenue for the third quarter to December is down 10%.
In a trading update, Delta indicated that the performance is reflective of the subdued consumer spending during the traditional holiday peak period. The declines were spread across the mix except Maheu and dairy mix beverages which recorded a growth of 8% in the quarter.
"Revenue is down 10% and 6% for the quarter and the nine months period respectively. The losses in economies of scale and the changes in the sales mix will have a bearing on the financial performance," said the group.
The rate of decline in lager beer volumes slowed while sorghum beer recorded a drop due to an undersupply of Chibuku Super after constrained brewing capacity and utility outages.
Lager beer volume is 9% below prior year for the quarter from a decline of 29% in the September quarter and down 20% for the nine months from 25% dip recorded at the six month period partly due to the interventions on affordability implemented at the beginning of the quarter and further price adjustments were effected at the beginning of January 2015 to reflect the reduction in excise duty from 45% to 40% of the producer price.
In a trading update, Delta indicated that the performance is reflective of the subdued consumer spending during the traditional holiday peak period. The declines were spread across the mix except Maheu and dairy mix beverages which recorded a growth of 8% in the quarter.
"Revenue is down 10% and 6% for the quarter and the nine months period respectively. The losses in economies of scale and the changes in the sales mix will have a bearing on the financial performance," said the group.
The rate of decline in lager beer volumes slowed while sorghum beer recorded a drop due to an undersupply of Chibuku Super after constrained brewing capacity and utility outages.
Lager beer volume is 9% below prior year for the quarter from a decline of 29% in the September quarter and down 20% for the nine months from 25% dip recorded at the six month period partly due to the interventions on affordability implemented at the beginning of the quarter and further price adjustments were effected at the beginning of January 2015 to reflect the reduction in excise duty from 45% to 40% of the producer price.
Source - online
