Published: 18 May 2014

A 38 percent rise in interest income led Delta to an increase in profitability for the year to March 31 in spite of the marginal decline in revenue.

For the period, the bottom-line was 3 percent higher at $105,7 million mainly boosted by finance income, which finance director Mr Matts Valela said was from improved cash holdings and treasury operations.

Interest income was at $9,5 million from $6,9 million last year. Chief executive Mr Pearson Gowero noted there had been a slowdown in consumer demand in the last half of the year as economic fundamentals continued to worsen.

"We are not seeing any green shoots or hope that things will get better as consumption trends remain poor. The fourth quarter was subdued, Christmas especially. We don't know where this will take us but we hope for a bright future."

Total beverage volumes were flat at 6,9 million hectolitres in spite of the significant upsurge in the demand for sorghum beer and alternative beverages. Revenue was down 1 percent to $625,51 million. Operating income was also down by the same to $134,2 million.

Lager beer volumes were 18 percent lower which Mr Gowero said reflected the softening demand and high consumer prices driven by the onerous levels of excise  duty.

He however, noted that the premium category performed better than mainstream and had helped contain the revenue loss.

Sparkling beverages declined a marginal 2 percent, mainly attributed to an out of stock situation occasioned by extended water supply disruption at the main factory in Harare and softening demand.

Harare, Bulawayo and Midlands had the top per capita consumption figures of 32l, 28l and 11l correspondingly while volume performance was positive in Mash West and Central, Mat North and Midlands with Harare, Bulawayo and Mat South recording shrinkages.

Convenience packs grew to 40 percent contribution from 32 percent while returnable glass bottles' contribution declined to 60 percent from 68 percent.

Sorghum beer had, however, performed well driven mainly by Chibuku Super although Mr Gowero noted that the other brands under this category had not witnessed any drop in volume.

Sorghum beer volumes were the highest since dollarisation as the beer "offers refuge to a lot of consumers" under the current liquidity crisis.
- The HErald

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