Delta Beverages profits surges 38 percent to US$75m

DELTA Corporation's profits surged 38 percent to US$75,2 million for the full year ended March 31, 2012, underpinned by growth in volumes and product availability. Total beverages volumes grew by 19 percent, attributable to solid demand of all beverage products.

An increase in profits saw earnings per share for the group close the year at US6,22c from US4,50c recorded in the previous year.

Revenue for the group increased 36 percent to US$554,8 million from US$408 million  in the previous year.

Delta chairman Mr Canaan Dube said profits earned from the firm's core business operations also grew to US$98,3 million, showing a 44 percent variance to the previous year.

Cash generated from operations was US$30 million over the prior year to US$121 million.

Delta's attributable earnings stood at US$73,7 million, a 39 percent increase.

The group declared an interim dividend of US0,83c, bringing the final dividend to US1,25c per share and making it one of the best paying stocks on the local bourse.

During the period under review lager volumes grew 23 percent, underpinned by a faster growth of the premium segment and improved product availability.

During the period under review, Delta secured US$60 million offshore funding to finance its business. However, net debt closed the year at US$7 million.

Capital expenditure for the group was US$74 million during the year.

Chief executive Mr Joe Mtizwa steps down at the end of this month and leaves the firm in a very strong position.
Mr Pearson Gowero takes over from June 1.

On the ZSE, Delta yesterday lost 0,57 percent to US69, 6c ahead of the release of its full-year results. The stock is struggling to get past the US70c mark since the beginning of the year, despite its vast potential.