Zimbabwe: Delta Corporation reports 24% jump in Q3 revenue

Zimbabwe’s Delta Corporation says revenue jumped 24 percent for the quarter to December 31, 2017 and 9 percent for the nine months due to strong demand on renewed hope of economic recovery after political changes that occurred in November last year, The Herald reported on January 16.

In a trading update for the last three months and nine months to December 31, 2017, Delta said that lager beer recorded a spike in demand with the volume growing by 36 percent above prior year for the quarter and 20 percent for the nine months.

“The period (after November 21, 2017) was characterised by significant political developments, which gave rise to renewed optimism for an economic recovery. This manifested through increased consumer spending and market liquidity,” the company said.

Former President Robert Mugabe resigned on November 21, 2017 after 37 years in power, following military intervention on November 14, to rescue a fast deteriorating socio-economic and political situation.

The Zimbabwe Stock Exchange’s biggest counter by market capitalisation said that the strong demand resulted in gaps in meeting consumer preferences of specific brands and packs owing to this unforeseen sharp, albeit welcome, increase in demand.

Sparkling beverages volumes increased by 14 percent over the prior year for the quarter and by 5 percent for the nine months.

Sorghum beer volume grew by 10 percent above prior year for the quarter and closed flat for the nine months. The stellar volumes growth during the period was driven by Chibuku Super.

The beverages maker has in the last couple of years been experiencing intermittent declines in revenue, volumes and profitability due to an increasingly difficult economic environment.

Delta has also declared a second interim dividend, number 119, of 2.25 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. The amount is $27. 9 million.

Delta said the dividend will be payable to shareholders registered at the close of business on February 2, 2018. The dividend will be paid by direct transfers or other approved forms of payment.

Meanwhile, Delta said that it is still trading under a cautionary issued with respect to the notice received from The Coca-Cola Company advising its intention to terminate the bottler’s agreements with Group entities (Notified Intention).

“This followed the merger of AB InBev and SABMiller Plc in October 2016 and the subsequent agreement in principle reached between TCCC and AB InBev to explore options to restructure the bottling operations in a number of countries. The discussions have progressed slower than anticipated,” Delta said.

16 January, 2018