DLTA.zw | Trading Update for the Q1 ended 30 June 2017

Published: 20 July 2017
Delta Corporation Limited issued the following trading update:

"The company today issues the following trading update for the first quarter ended 30 June 2017.

We report a positive volume outturn which is attributable to improved consumer spending arising from a better agricultural season and the bedding down of electronic payment platforms in settling transactions.

Lager beer volumes grew 12% above prior year with stronger recovery in the value brands.

The soft drinks category grew 3% over prior year, with both the sparkling beverages and Maheu registering growth. There is still a prevalence of imports of sparkling beverages from regional markets due to price and import duty disparities.

The Sorghum beer volume is 5% down on prior year with Chibuku Super growing by 9% in the quarter. The market is still to strike a balance in the demand of the standard Chibuku and Chibuku Super.

Group revenue increased by 2% over prior year, reflecting the changes in product mix

Reminder on Cautionary Statement
Shareholders are reminded that the Company is trading under a cautionary issued with respect to a notice received from The Coca-Cola Company ("TCCC") advising of an intention to terminate the Bottler's Agreements with the Group entities ("Notified Intention"). This followed the merger of AB InBev and SABMiller Plc in October 2016 and the subsequent agreement in principle reached between TCCC and AB InBev to explore options to restructure the bottling operations in a number of countries. The relevant parties remain engaged in discussions and stakeholders will be updated on progress."

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