“We need to immediately respond by rationalising our operations and reducing headcount,” Marshall Pemhiwa, the company’s director of human resources, said in a memorandum to heads of department, confirmed by the company. Other cost-saving measures include a recruitment freeze and cuts to training and canteen spending, according to the note.
Delta, about 23 percent owned by London-based SABMiller Plc, said in a separate statement that lager sales declined 8 percent in the three months through June, even as the Harare- based company reduced prices. Sparkling drinks were down 15 percent, while sorghum beer — made from a type of plant grown in Africa and used for food and biofuels — fell 12 percent.
“The downturn reflects weak underlying demand and the consumer preference for lower priced alternative offerings,” Delta said. The share price was unchanged at $0.97 as of 3 p.m. in Harare, valuing the company at $1.2 billion.
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