Published: 24 July 2013

Delta publishes a trading update for the first quarter ending June 30 saying total beverage volumes are up 4% with all categories except lager beer registering growth despite the slackening consumer demand witnessed in the economy.

All beverage categories except lager beer registered volume growth. The 4% overall volume growth was on account of a 13% growth in SBs, a 6% increase in sorghum and an 80% jump in Maheu (alternative beverages), albeit off a low base accompanied by an 8% contraction in lagers.

The lager beer volumes performance were negatively impacted by the significantly higher than recommended retail prices in the general trade occasioned by the hike in excise duty in December 2012 as well as lack of coinage. Revenue for the first quarter grew by 8% year on year. The overall financial performance was in line with management expectations.

Delta will hold an AGM today, where management will provide further notes to the first quarter performance.

Sales value growth was maintained above volume growth. The company states that for every 1% growth in GDP, Delta's volumes can grow by a factor of 3 or 4 times. Per capita consumption of about 16 litres p.a. (for beer excluding sorghum beer) and 13 litres p.a. for SBs are low in Zimbabwe by developing world standards suggesting tremendous growth potential.

Delta has a dominant position commanding approximately 96% of the beer market and about 92% of the sparkling beverages. 
- businessdaily

You might also want to read this

• Delta lager volumes decline 40%
• Delta to revive malt exports as forex shortages continue to bite
• Delta snaps up 50,1% stake in Afdis
• Delta Corp volumes drop on price hikes
• AB InBev gives Delta breathing space
• Delta urged to explore export market
• Delta's AB InBev places $120m unremitted dividends, fees into RBZ saving
• Delta on the brink
• Delta debacle: Dialogue key
• Delta shuts soft drink plants