The current cash crisis in Zimbabwe has weighed heavily on Delta Beverages revenue for the year ended March 2017 ‘which tumbled by 10 percent to US$482 million compared to US$538 million in 2016.
Delta Beverages Chairperson, Canaan Dube said the company experienced significant challenges during the year, characterized by constrained aggregate demand, limited access to cash and alternative payments platforms and delays in foreign remittances.
Dube said the business remains profitable albeit at reduced volume and revenues.
“Lager beer is down 7%, sparkling beverages down 11% and sorghum beer is down 3%…
“There was marked increase of soft drinks imports in the second half of the year while the inaccessibility of the markets from heavy rains was more pronounced on the sorghum beer volume.
“The lower volume and increased contribution of value brands and packs reduced the margin with operating income and EBITDA down 15 % and 13% respectively,” he said.
Dube also said reduced investment in working capital arising from softening volume delayed settlement of both foreign creditors, and dividends have increased net funding to US$113 million.
Meanwhile, the company declared a total dividend for the year ended 31 March to US$5.45 cents per share after the board declared two interim dividends of US$2.00 cents and US$1.00 cent per share and a final dividend of US$2.45 per share.