Zimbabwe News and Internet Radio

Delta declares interim dividend

By Oliver Kazunga

Listed beverages concern, Delta Corporation, has declared an interim $31,7 million total dividend for the quarter ended December 31, 2018.

LISTED beverages concern, Delta Corporation
Delta is 38 percent owned by global brewing giant SABMiller

In a notice to shareholders, Delta Corporation company secretary Mr Alex Makamure said the dividend would be payable to shareholders registered at the close of business on Friday.

“The board of directors has declared an Interim Dividend number 122 of US2,5 cents per share payable in respect of all the qualifying ordinary shares of the company to be paid out of the profits for the current financial year,” he said.

Mr Makamure said the dividend would be paid by direct transfers or other approved forms of payment.

In a trading update for the third quarter and nine months to December 31, 2018, Mr Makamure said Lager beer volumes grew by 27 percent over prior year for the quarter and were up 43 percent for the nine months.

“The business has endeavoured to meet the high consumer demand in spite of the challenges in accessing some imported raw materials and services,” he said.

Mr Makamure said Delta’s Sorghum beer volume in Zimbabwe grew by 15 percent above prior year for the quarter and six percent for the nine months.

“There were supply gaps due to frictional shortages of packaging materials and extended plant breakdowns mostly occasioned by lack of foreign currency for spares and contractual services,” he said, adding that Chibuku Super contributed 85 percent of the volume.

The sparkling beverages volume declined by 66 percent compared to prior year for the quarter and decreased by 26 percent for the nine months.

The group’s revenue increased by five percent for the quarter and 24 percent for the nine months reflecting growth in the beer businesses which was weighed down by depressed outturn in soft drinks.

“The business remains profitable and continues to generate positive cash flows. There is however, a need to note the disruptions to operations arising from limited access to foreign currency,” said Mr Makamure.

The company announced in December last year that it had entered into binding agreements to acquire the 100 percent stake currently held by Diageo Plc in United National Breweries Proprietary Limited in South Africa.

The transaction was expected to close in the first half of 2019 and is subject to regulatory approvals in Zimbabwe and South Africa. The Chronicle