DLTA.zw | Trading Update for the Second Quarter Ended 30 September 2017

Published: 16 October 2017

Details:
The Company has issued an update for the second quarter and half year ended 30 September 2017. The trading environment continues to be impacted by the prevailing transactional challenges characterized by the dominance of the electronic payment methods.

Lager beer volume grew 11% above prior year for both the quarter and the six months with a mix in favour of value packs and brands benefitting from improved disposable incomes driven by agriculture and small scale mining.

Sparkling beverages volume declined by 1% for the quarter and closed flat on prior year for the six months, whilst Maheu volume is up 12% and 19% for the quarter and six months respectively.

The Sorghum beer volume is 3% down on prior year for the quarter and 4% down for the six months. The category is particularly impacted by transactional challenges in the rural areas and also the trading up to lager beer in some markets.

Group revenue increased by 1% for the quarter and is up 2% for the six months.

The half year results are expected to be published on 9 November 2017.

The Group's previous financial statements and other company reports are available on the website www.delta.co.zw.

REMINDER ON CAUTIONARY STATEMENT

Shareholders are reminded that the Company is trading under a cautionary issued with respect to the 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 discussions have progressed slower than anticipated.
- DLTA

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