The global Covid-19 pandemic weighed in on beverage maker, Delta Corporation revenue in the quarter ended on June 30, 2020 due to alcohol bans and travel and social gathering restrictions effected by governments in the region to curb the virus from spreading during the period.

In Zimbabwe, since March there has been shorter operating hours of between 8 am and 3 pm for retailers.

In its latest trading update, the Group recorded a 5 percent slid in revenue for the quarter compared to same period last year.

The Group’s South Africa entity, United National Breweries only traded for two weeks during the quarter as authorities implemented a strict prohibition of alcohol sale which remains in place.

In Zimbabwe, restrictions on travel and social gathering limited sale of alcohol.

“Trading in alcohol was restricted to off premises outlets for home consumption in line with Covid-19 guidelines,” the Group said.

As a result, lager volumes declined 18 percent while sorghum beer volumes capitulated 51 percent for the quarter, ” due to limited access to market particularly in trade channels such as bottle stores and bars,” said Delta.

On a positive note, Natbrew Zambia managed to narrow the volume falls for the Group by posting a 17 percent increase in alcoholic volumes despite working capital constraints.

“The sales were mostly in Chibuku Super which is more accessible in the off premises trade channels,” the company said.

Sparkling beverages volumes also grew by 35 percent, which could have performed even higher if it wasnt for the various restrictions which affected market access.

The company managed to reduce its foreign liabilities by payment of USD 3.5 million leaving an outstanding balance of USD 60 million thanks to the improvements in availability of foreign currency following government decision to allow use of foreign currency free funds and the foreign currency auction system.

Source link

0 0 vote
Article Rating
Would love your thoughts, please comment.x