18 January 2018
   
LATEST: Bennett in fatal chopper crash?
Discipline politically unruly chiefs: group
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
MORE NEWS
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
MORE BUSINESS
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
MORE SHOWBIZ
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
MORE SPORTS
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
MORE OPINION
 
Economy: the need for a paradigm shift
Trump rage ignores truth: A response
MORE COLUMNISTS
 
 

Delta revenue down 8pct, fails to remit $30mln in dividends

 

09/11/2016 00:00:00
by Source.co.zw
 
 
RELATED STORIES

HARARE: Beverage manufacturer Delta Corporation on Wednesday reported revenue of  $246,6 million, eight percent down on the prior year as most of its segments recorded lower volumes on the back of depressed consumer spending.

Lager beer volume was down 11 percent on prior year as demand shifted to traditional beer and other cheaper alcohol offerings while volumes for Sparkling beverages dropped by three percent.

Sorghum beer volumes increased by six percent on prior year while contributing 60 percent to total revenue.

Operating income was down nine percent to $39,4 million and earnings before interest, tax depreciation and amortisation (EBITDA)  was eight percent lower at $54,9 million, reflecting lower revenues.

Chief executive Pearson Gowero said the contribution of Chibuku Super remains strong but decried the  cash crisis, which he said delayed the commissioning of two new Chibuku Super plants.

“The delay in paying foreign suppliers has resulted in late commissioning of the new plants at Masvingo and Kwekwe which are now expected to contribute to production before the end of the calendar year,” said Gowero.

The company saw a decline in share of profit of associates to $351,000 in the first half to September 30 from $1,463 million last year.

Gowero also noted that while the shortage of foreign currency spurred demand of local products, it  is significantly impacting the the company’s ability to source critical raw materials.

Delta also said it had failed to pay up to $30 million in dividends to its foreign investors as a result of delays by local banks to settle foreign payments.

Zimbabwe is in the throes of an acute shortage of banknotes, with the authorities planning  to introduce a token currency in the form of bond notes.

Government has prioritised repatriating profits and dividends to foreign investors.

Delta finance director Mathlogonolo Valela on Thursday told an analysts briefing that local banks were having difficulties in processing international payments.

“We still owe major shareholders some dividends from last time because banks have delayed payments and we owe foreign creditors,” he said.

“We have  a foreign loan of about $30 million from Mauritius which falls due in the next 15 months but we are taking measures that should resolve the issue.  We will never allow our creditors to be exposed to that extent but this is not something we can control.”



Advertisement

Delta declared a dividend of $57 million for the full-year to March 2016.

The board declared an interim dividend of two cents per share, totalling $25,8 million to be paid in December.

Delta’s major shareholders are Anheuser-Busch InBev SA/NV with a 38,2 percent stake, Old Mutual 14,1 percent and Templeton Asset Management , 3,45 percent.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker