- Loss per share above 203%
- Volumes dropped by 27%
Harare – Leading sorghum (opaque) beer producer in Zambia, Natbrew Zambia which is wholly owned by Zimbabwe Stock Exchange heavyweight beverage company, Delta, said it expects a surge in loss for the year ended 31 march 2020 compared to last year.
In a trading update, the company said the Loss Per Share for the year ended 31 March 2020 is expected to be 203% higher than that of the corresponding period last year.
In 2019, Zambia experienced a harsh operating environment characterised by suppressed demand and a countrywide power deficit.
As a result, the country’s economic performance deteriorated in 2019, as the country faced severe drought and a slowdown in mining activity.
The economy of Zambia, the second largest copper producer in Africa after the Democratic Republic of the Congo, is highly dependent on copper prices, which generate three-quarters of export earnings.
Natbrew said the company faced significant headwinds in the year which resulted in margins erosion due to the high levels of inflation which triggered widespread escalations in local costs while the softening exchange rate was responsible for substantial increases in the prices of imported packaging materials and other inputs.
Delta recently published its full year results and it highlighted that sorghum beer volumes for Natbrew declined by 27% on last year.
The company expects its full year results to be released on or about 08 June 2020, therefore shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.
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