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Harare - SABMiller’s [JSE:SAB] Zimbabwe-based associate Delta says it does not expect any change in its operations and product offering following the proposed takeover of SABMiller by Anheuser-Busch (AB) InBev.
Speaking at a results presentation on Thursday, CEO Pearson Gowero said the SABMiller deal will not affect its product offerings as well as its agreements with Coca-Cola.
Delta is the official bottler of Coca-Cola products in Zimbabwe. Media reports say the SABMiller, AB InBev deal could complicate relations as AB InBev is a key PepsiCo soda bottler in Latin America, while SABMiller is a key Coke bottler in Africa.
“We have our own agreements with Coca-Cola so the deal between SABMiller and AB InBev will not affect us,” said Gowero.
Gowero also said Delta is currently leveraging on its association with SABMiller to introduce a number of new products.
The company's performance for the year ended March 31 2016 was partly impacted by the importation of cheaper offerings from neighbouring countries.
"Some of the imported products we are seeing on the market are similar to our product offerings," said Gowero, adding that parallel imports from Botswana and Zambia were benefiting from trade agreements that allows for lower duties.
Gowero also noted that competition from other forms of alcohol had increased while performance was also negatively impacted by falling disposable incomes and cash shortages.
In the period under review, revenue was down 7% to $538.2m as consumers shifted towards cheaper offerings and value products.
This resulted in declining operating margins to 20% from 22.08%.
The company is, however, still able to pay a healthy total dividend of US 4.70 cents taking its yield to 6.49% an all time high.
