Prosper Ndlovu Business Editor
LEADING beverages concern, Delta Corporation has declared a $45 million total dividend for the full year to March 2015.
A final dividend of $28 million will be paid to the shareholders tomorrow, the company said in a statement yesterday.
“Delta Corporation will on Wednesday 10th June 2015 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,” it said.
The top listed entity has been paying dividends since 2010 despite dropping profit margins by 13 percent in the prior year due to the prevailing negative macro-economic fundamentals.
It has, however, also managed to commit significant amounts to the capital investment programme.
“The company 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,” said Delta.
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.
The finance director, Matts Valela told analysts at the 2015 results briefing last month 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,” said the firm.