Delta FY revenue falls 10pct, profit at $70mln

Delta FY revenue falls 10pct, profit at $70mln

HARARE, May 10 (The Source) – Delta Corporation on Wednesday reported a 10 percent fall in revenue to $483 million in the full year to March 31,  compared to $538 million in the previous year as demand remained depressed in the face of falling incomes.

Net profit declined 13 percent to $69,9 million after lager volumes fell by seven percent while sparkling beverages and Sorghum beer declined 11 percent and 3 percent respectively.

Chief executive Pearson Gowero told analysts that a liquidity crunch weighed down on overall demand, with the introduction of bond notes —  a surrogate currency — having limited impact.

“We had a rough year and all our numbers are looking south. We really felt a squeeze because of the limited access to cash and delays in foreign payments,” he said.

“We also lost some business because of the heavy rains which made several major roads impassable and limited access to markets.”

Gowero said the company owes foreign shareholders and foreign creditors $28 million and $20 million respectively as a result of foreign payment delays.

Delta is now an associate of Belgian brewer, AB InBev following the later’s acquisition of SABMiller last year.

Operating income fell 15 percent to $82 million while finance costs during the year grew to $6,9 million from $5,7 million in the previous year.

Earnings before interest, tax, depreciation and amortisation (EBIDTA) fell 13 percent to  $112,8 million in the period.

Total assets increased by 2,7 percent to $411 million from $400 million recorded in the previous year.

The company spent  $40, 5 million in capital expansion compared to $49,4 million in the prior year and said it would not undertake any major capex projects in the following financial year.

Its share of profit from associates declined by over half to $1,8 million from $3,9 million previously on the back of a poor year by Schweppes Zimbabwe, whose financial performance was weighed down by agri-processing units, Best Fruit Processors and Beit Bridge Juicing Company.

Earnings per share (EPS) dropped  12 percent to 5,7 cents

The board declared a special dividend of 1 cent per share and a final dividend of 2,45 cents per share.