Delta pays $45m dividend

HARARE – Zimbabwe’s largest beverages maker, Delta Corporation (Delta), will on Wednesday this week reward its shareholders with a final dividend of $28,4 million.

This will bring the total dividend for the year to March 2015 to $45,1 million, which is three percent above the $43,7 million disbursed in 2014.

The Zimbabwe Stock Exchange-listed blue-chip counter has been paying dividends since 2010 despite committing significant amounts to the capital investment programme.

Alex Makamure, Delta Company Secretary, said the beverages manufacturer has increased the dividend pay-out despite the profit for the year decreasing from $107,2 million in 2014 to $92,8 million in 2015, a decline of 13 percent.

The lower profit was on the back of reduced volume and revenues from lager beer and soft drinks, which reflects the difficult trading environment.

“The company paid a total of over $166 million in direct and indirect taxes during the year, which mainly comprises excise duty on clear beer and value added tax,” he said.

Delta’s finance director, Matts Valela, told analysts at the 2015 results briefing in May that the company intends to reduce the dividend cover to around two times, benefiting from reduced capital expenditure.

He emphasised the importance of rewarding shareholders with cash as some of them, particularly pensioners, rely on these remittances for sustenance.

The dividend will be paid to shareholders registered in the books of the company as at 5 June 2015. 

Comments (1)

Its notably good if considering that the economy is bleeding. They however need extend their social participation,which I feel is lower at the moment

LEO - 10 June 2015

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