Harare - Anheuser-Busch (AB) InBev [JSE:ANB] is set to get an improved dividend pay cheque after its Zimbabwean associate Delta Corporation improved its dividend payout ratio to 80% for the six months to end-September 30 2016.
Delta which is owned more than 38% by AB InBev, reported earnings per share amounting to 2.5 US cents and will pay a dividend of 2c/share to its shareholders, including AB InBev.
In total, Delta will pay a total interim dividend of $25m to its shareholders. This is in addition to the $4.3m spent on share buybacks.
Speaking at a results briefing on Monday, Delta's financial director Matts Valela said the beverages company had decided to increase the dividend payout as a way of managing its strong cash pile.
As at September 30 2016, Delta's net funding was at $132.1m, up 100% from $65.8m in the prior comparative year.
The group also increased its cash flows from operations to $76.1m, up from $46.8m prior year.
Revenue for the period under review, however, declined by 8% to $246.6m from $269m realised in the same period last year.
Profit for the group decreased to $30m, from the $35.7m recorded last year.
Meanwhile, Delta said its new shareholders were interested in the business and would prioritise Zimbabwe ahead of other African business.
Delta’s chief executive officer Pearson Gowero told the results briefing that AB InBev is solidly behind the Zimbabwean business unit.
“The new shareholder is interested in the business and was here last Friday,” he said.