Business / Companies
Delta Beverages plans to pay an interim dividend
31 Jul 2011 at 16:00hrs | Views
Delta Beverages, Zimbabwe's biggest company by market value, recorded a 42 percent increase in revenue in the first quarter as beverage volumes climbed. The company is also planning on paying an interim dividend.
Business performance was strongly ahead of expectations across board. The group also reported a strong Sorghum beer (Chibuku) turnaround with capacity constraints holding back Sparkling volumes.
Beverage volumes increased 27 percent to 1.67 million hectoliters in the first quarter. This is the strongest first quarter volume growth since 2009.
The brewer and soft-drinks maker's revenue rose to $144 million in the three months through June from $101 million a year earlier with April, May and June recording $50 million, $47 million and $47 million respectively.
Delta's contribution to the fiscus rose by 48% to $37 million from $25 million last year.
Management refused to give a comment on how Afdisis is performing citing that the company was in close period so they will not comment save to say that they are in recovery mode.
They advised that Schweppes Zimbabwe Limited volumes for the 6 months to June are 18% ahead of prior year even though volumes were constrained by juice shortages.
Management also advised that there is a strong drive underway to localize suppliers. There is collaborating with suppliers to achieve this provided import parity benchmarks are met with regard to Price Quality and Reliability of supply. This revives local industry and pre-empts future supply bottlenecks.
Barley supplies are secure with farmers contracted for over 5 000 hectares this season.
Zesa is giving Delta some headaches but management said they are investing to achieve dedicated Zesa supplies at key production facilities.
Despite the unusually cold weather volumes were strong except for Soft Drinks which are the most sensitive to the cold spell. Lager Beer grew by 35%, Sorghum Beer 13%, Sparkling Beverages 37% and Maheu grew by 273%. A total beverages growth of 23% was recorded.
On their prospects, management expects volume growth to be sustained and to be ahead of budget. It expected earnings growth to be well ahead of the 16% growth it factored into budget. There are plans to pay an interim dividend at half year.
Business performance was strongly ahead of expectations across board. The group also reported a strong Sorghum beer (Chibuku) turnaround with capacity constraints holding back Sparkling volumes.
Beverage volumes increased 27 percent to 1.67 million hectoliters in the first quarter. This is the strongest first quarter volume growth since 2009.
The brewer and soft-drinks maker's revenue rose to $144 million in the three months through June from $101 million a year earlier with April, May and June recording $50 million, $47 million and $47 million respectively.
Delta's contribution to the fiscus rose by 48% to $37 million from $25 million last year.
Management refused to give a comment on how Afdisis is performing citing that the company was in close period so they will not comment save to say that they are in recovery mode.
Management also advised that there is a strong drive underway to localize suppliers. There is collaborating with suppliers to achieve this provided import parity benchmarks are met with regard to Price Quality and Reliability of supply. This revives local industry and pre-empts future supply bottlenecks.
Barley supplies are secure with farmers contracted for over 5 000 hectares this season.
Zesa is giving Delta some headaches but management said they are investing to achieve dedicated Zesa supplies at key production facilities.
Despite the unusually cold weather volumes were strong except for Soft Drinks which are the most sensitive to the cold spell. Lager Beer grew by 35%, Sorghum Beer 13%, Sparkling Beverages 37% and Maheu grew by 273%. A total beverages growth of 23% was recorded.
On their prospects, management expects volume growth to be sustained and to be ahead of budget. It expected earnings growth to be well ahead of the 16% growth it factored into budget. There are plans to pay an interim dividend at half year.
Source - Byo24News
