Delta’s volumes continue staggering. . .new Super Chibuku plant by July

DELTA1DEMAND for lager beer and sparkling drinks continue sagging owing to the unrelenting illiquid market conditions.

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Delta Corporation, the country’s biggest beverage manufacturer, reported today that notwithstanding the reduction in excise duty this year, lager beer volumes in the year ended December 31 2014 declined 17 percent from a year earlier.

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Similarly, soft drink volumes fell 6 percent in the review period.

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Government slashed excise duty from 45 percent to 40 percent effective January 1 this year.

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But demand for maheu and dairy mix beverages continue growing, with volumes rising 11 percent.

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Volumes of sorghum beer – mainly sold under the Chibuku Super brand – also climbed 8 percent as consumers shift to lowly-priced opaque beer.

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A new Chibuku Super production facility in Bulawayo will be commissioned by July 2015.

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On the overall, Delta’s revenues slumped 4 percent to US$576 million, while earnings per share (EPS) fell 13 percent to US7,44 cents.

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Net profit slowed to US$92,8 million from US$107 million a year earlier.

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A final dividend of US2,30 cents per share has been declared.

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RESULTS AT A GLANCE

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• Net Profit dropped to US$93 million from US$107 million

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• Revenues declined to US$576 million from US$602 million

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• Lager beer volume fell 17 percent

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• Sparkling beverages fell 6 percent

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• Sorghum beer up 8 percent

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• New Super Chibuku plant to be commissioned July 2015

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• A final dividend of US2,30 cents per share to be paid June 10 2015