The Sunday Mail
Enacy Mapakame
LOCAL stocks last week broke a two-week charge after slipping 0,12 percent as Delta, the largest counter by market capitalisation, reported a 12 percent decline in profits for 2015.
By close of trading Wednesday, the industrial index had slowed to 107,12 points dragged by losses in Zimre Holdings Limited and Meikles Limited that were down 10,1 percent and 4,1 percent respectively.
The mining index remained flat at 21,55 points as investors opted to sit on the fence on falling global commodity prices.
Innscor Africa’s share price rose to USc23,2 from USc23 after the group’s EGM approved unbundling of specialty retail business, Axia Corporation Limited.
Axia debuts on the Zimbabwe Stock Exchange this week.
The industrial giant’s fast food retail unit, Simbisa, rose to USc13,5.
On Wednesday Delta Beverages reported that net profit for the full year ended December 31, 2015 dropped 12 percent to US$80 million from US$91 million in the same period a year earlier in line with market expectations.
Revenues tumbled 7 percent from a year ago to US$538,2 million on soft demand.
“There is some infiltration of products from adjacent markets due to the stronger US dollar. Consumers continue to shift towards affordable brands as they seek to strengthen their dollar . . . The El Nino drought, poor cash and liquidity availability, delayed remuneration and continued retrenchments all worked to constrain consumer demand,” said group chairman Mr Canaan Dube in a statement accompanying the company’s financials.
Revenue from continuing operations fell six percent to US$538 million from US$576 million from the corresponding period a year ago.
Operating income declined 14 percent from a year earlier to US$96 million as lagers, sparkling beverages and sorghum beverage volumes declined eight percent, six percent and three percent in that order.
Volumes from health drinks such as Shumba Maheu and Super Sip fell 2 percent.
Delta is scheduled to commission its Chibuku Super plants in Masvingo and Kwekwe in September at a cost of US$30 million.
The new plants are expected to improve the availability of the market-favoured Chibuku Super.
Delta’s total tax remittances for the year amounted to US$139,6 million while its capital expenditure topped US$44,3 million.
For the period under review, Delta declared a special dividend of USc0,95 per share and a final dividend of USc2,35 per share.
At the close of trading Wednesday, Delta’s shares were trading at USc73. On a year-to-date basis, the stock is up 3,54 percent.
