SABMiller's Zimbabwe Unit Profit Falls as Beer Sales Declineby
Delta Corp battling unemployment, delays to salary payments
Zimababwe's biggest company raises dividend despite woes
Delta Corp Ltd., Zimbabwe’s biggest company, said full-year profit declined 13 percent after unemployment and delays paying government worker salaries hurt beer sales.
Net income was $81 million in the year through March, down from $93 million in the previous period, the Harare-based company said in an e-mailed presentation to analysts on Wednesday. Earnings before interest, taxes, depreciation and amortization fell 10 percent. Delta is about 23 percent-owned by London-based SABMiller Plc.
Delta is battling weak consumer spending in Zimbabwe amid a crisis that has seen the economy shrink by about half since 2000. The company said last month it’s considering whether to drop its beer prices to tempt drinkers after full-year revenue fell. Lager volumes declined 8 percent in the year, soft drinks by 6 percent and sorghum beer, made from a type of plant grown in Africa and used for food and biofuels, by 3 percent.
Sales of Delta’s Chibuku sorghum beer showed signs of recovery after price cuts, the company said. Additional capacity has been commissioned at the Chibuku brewery in Bulawayo.
The full-year dividend was raised 29 percent to 4.7 cents, after the company paid a special dividend of 0.95 cents.