Business / Companies
Delta Beverages continues to register a decline in volumes
13 May 2015 at 18:15hrs | Views
Beverages maker Delta continues to register a decline in volumes as the slowdown in the economy takes its toll on the company's performance.
Revenue for the year ended March 2015 was down 4 percent at $576,5 million from $602,2 million reflecting the effects of lower sales value and volume in both lager beer and sparkling beverages.
Net sales stood at $503,4 million in the period, down from $518,8 million as lager beer volume were down 17 percent on prior year and soft drinks volume comprising both sparkling and alternative beverages went down 6 percent.
In a statement, the company said the rate of decline decelerated in the last half of the year due to price reductions that improved the affordability of their brands.
The revenue decrease was however mitigated by an 8 percent increase in Sorghum beer driven by the contribution of the Chibuku Super.
"The supply of Chibuku Super improved in the last quarter of the year with the brand attaining a 50 percent contribution by March 2015. The new Chibuku Super production facility in Bulawayo is scheduled for commissioning by July 2015, which will assist in closing the supply gaps," the company said.
The maheu and dairy mix beverages were up 11 percent in the review period.
The company also recorded a 14 percent decrease in operating income to $111,1 million and EBIDTA was down 10 percent to $143,2 million. Earnings per share were also down 13 percent to 7,44 cents but ahead of forecasts of 7,36 cents.
Cash generated from operations declined to $139 million from $146 million due to lower profitability and reduced creditors.
Revenue for the year ended March 2015 was down 4 percent at $576,5 million from $602,2 million reflecting the effects of lower sales value and volume in both lager beer and sparkling beverages.
Net sales stood at $503,4 million in the period, down from $518,8 million as lager beer volume were down 17 percent on prior year and soft drinks volume comprising both sparkling and alternative beverages went down 6 percent.
In a statement, the company said the rate of decline decelerated in the last half of the year due to price reductions that improved the affordability of their brands.
"The supply of Chibuku Super improved in the last quarter of the year with the brand attaining a 50 percent contribution by March 2015. The new Chibuku Super production facility in Bulawayo is scheduled for commissioning by July 2015, which will assist in closing the supply gaps," the company said.
The maheu and dairy mix beverages were up 11 percent in the review period.
The company also recorded a 14 percent decrease in operating income to $111,1 million and EBIDTA was down 10 percent to $143,2 million. Earnings per share were also down 13 percent to 7,44 cents but ahead of forecasts of 7,36 cents.
Cash generated from operations declined to $139 million from $146 million due to lower profitability and reduced creditors.
Source - BH24
