Leading beverages manufacturers Delta Corporation has paid US$21.1 million in sugar tax over the year, with US$14.7 million from the soft drinks unit alone.
Apparently, the company’s financials revealed that it has reported a 5 percent rise in revenue to US$807.4 million for the year to March.
Company Chief Executive Officer Matlhogonolo Valela and Financial Director Alex Makamure also spoke on the impact of the tax on operations and competitiveness.
Miners, farmers, and beneficiaries of diaspora remittances are the people driving Delta’s sales.
The company said it is therefore keenly watching gold prices, harvests and currency movements.
Key takeaways:
• Growth was held back by weak performance in its South Africa and Zambia businesses, plus the impact of the sugar tax on drinks (US$0.001 per gramme of added sugar).
• Delta paid US$21.1 million in sugar tax over the year, with US$14.7 million from the soft drinks unit alone
• The tax has pushed up prices of locally made drinks, leading to an inflow of cheaper imports
• Delta absorbed the sugar tax to cushion customers, and this has squeezed margins and affected profitability.
Zwnews
