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Harare - Zimbabwean brewery Delta Corporation, an associate
of Anheuser-Busch InBev, has declared a second interim dividend as efforts to deploy cash
into the business remain challenging.
In a notice to shareholders, the board of directors said it
has declared a second interim dividend of 1 US cent per share in addition
to the 2c/share or $25m in total that was originally paid after the
release of its interim results, back in November 2016. In total, the second
interim dividend amounts to $12.25m.
Analysts said the move is a way for the group to manage its
strong cash pile.
As at September 30 2016, Delta had cash and cash equivalent
of $197.1m, while net cash amounted to $132.1m.
The group has however not been able to deploy its cash into
the business in a market where aggregate demand is falling, forcing it to
operate below full capacity.
“Efforts to invest in new plant and equipment are also not
as smooth as they would want as delays in accessing foreign currency brings in
inefficiencies and increased costs,” said market analyst Walters Mandeya.
Last year, the group had to delay commissioning of its new Chibuku plants amid delays in getting some of the equipment into the country due to foreign currency shortages.
“The delay in paying foreign suppliers has also resulted in
late commissioning of the new plants at Masvingo and Kwekwe,” said Delta CE
Pearson Gowero at the company’s last analysts’ briefing.
“Placing funds on the local money market or leaving it as an
ordinary deposit has also not been ideal, given the low interest rates being
offered by banks,” Mandeya added.
The company has however said foreign remittances will only
be made subject to availability of foreign currency.
Zimbabwean companies have not been able to remit dividends
to their foreign shareholders due to limited availability of cash.
BAT Zimbabwe is also struggling to remit dividends declared back in 2015 due to delays in receiving the relevant exchange control approvals.
