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Delta Corporation Limited CEO Pearson Gowero
Source: Big Law IR

The Company today issues the following update for the quarter ended 31 December 2014.

The trading environment remains difficult as reflected by the subdued consumer spending during the traditional holiday peak period.

All our beverage categories, except Maheu, recorded some volume decline in the quarter.

The lager beer volume is 9% below prior year for the quarter and down 20% for the nine months, indicating some slowdown in the rate of decline compared to the preceding quarter. This is partly due to the interventions on affordability implemented at the beginning of the quarter. 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.

The soft drinks volume comprising both Sparkling and Alternative beverages are down 5% for the quarter and 6% below prior year for the nine months. The Maheu and dairy mix beverages recorded a growth of 8% in the quarter.

The sorghum beer volume is down 1% for the quarter and is 8% above prior year for the nine months. There was an under supply of the Chibuku Super on account of constrained brewing capacity and utility outages. Additional capacity is expected to come on stream by mid-year 2015.

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.

The Group’s previous financial statements and other company reports are available on the website www.delta.co.zw.

20 January 2015

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