Zimbabwe’s leading beer brewer and soft drinks maker, Delta Beverages has blamed a decline in revenue generation to heavy rains and cash shortages in the economy.
Revenues for the company tumbled by as much as 15 percent in the fourth quarter ending 31 March 2017. This further worsened the company’s revenue position as income has gone down by about 10 percent for the full year period.
“The 4th quarter recorded a particularly depressed volume and revenue outturn. In addition to the constrained aggregate demand, the outturn was impacted negatively by heavy rains that reduced market access and outdoor consumption occasions.
“The pronounced shortages of bank notes and limited availability of alternative payment platforms also affected demand,” said Delta Beverages.
According to the company, lager beer volumes went down by 5 percent while sparkling beverages volume was down by 24 percent.
The sorghum beer volume was also 17% down on prior year for the quarter which effectively led to a 3% fall for the full year
Delta also expressed concern over importation of soft drinks from Zambia and Mozambique.
The giant beverages manufacturer said the inaccessibility of certain markets especially the Southern half of the country due to heavy rains and floods that were recorded early this year.
However the company reported that due to the commissioning of Masvingo and Kwekwe plants, supply of Chibuku Super has stabilized.
Group revenue is down 15% and 10% for the quarter and full year respectively. The group’s full year financial results are expected to be published on 11 May.