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Business Reporter

BEVERAGES maker, Delta Corporation says revenue for the second quarter to September 30, 2016 fell 6 percent due to changes in the product mix and pricing decisions.In a trading update, Delta said depressed consumer spending, limited access to cash and weak macro-economic performance continued to exert pressure on its business.The Zimbabwe Stock Exchange listed company said revenue was 8 percent down for the six months period.

Delta said that lager beer volumes declined 7 percent for the second quarter under review and 11 percent for the six months period to September 30, 2016.However, Delta said sparkling beverage volumes for the quarter for the quarter to September increased by 3 percent compared to the same period the prior year, but fell 3 percent in the six months period to September.

Sorghum beer volumes increased by 4 percent for the quarter and were 6 percent higher for the 6 months to September. Contribution of Chibuku Super remains strong. Delta is building more Chibuku Super production capacity across the country.

“The delays in payments to foreign suppliers resulted in the late commissioning of the new plants at Masvingo and Kwekwe, which are now expected to contribute to production before the end of the Calendar year,” Delta said ahead of the release of its financial results for the half year period early next month.

“The trading environment continues to be constrained by consumer spending, limited access to cash and the generally weak macro-economic performance,” Delta said.

The beverages maker said trading patterns remain inconsistent with shortages in foreign currency resulting in reduced importation of consumer goods leading to an increase in demand for some of its products. Consumer demand has largely remained weak in Zimbabwe, as many companies struggle to keep afloat in an increasingly difficult operating economic environment.

Finance Minister Patrick Chinamasa said in his midterm fiscal policy review that he expects the economy to grow by 1,2 percent this year, as weak commodity prices and effects of drought affected growth.