DLTA.zw| Trading Update

Published: 05 July 2017

Delta Corporation Limited issued the following trading update:

"The 4th quarter recorded a particularly depressed volume and revenue outturn. In addition to the constrained aggregate demand, the outturn was impacted negatively by heavy rains that reduced market access and outdoor consumption occasions. The pronounced shortages of bank notes and limited availability of alternative payment platforms also affected demand.

Lager beer volume is 5% below prior year for the quarter and down 7% for the full year.

Sparkling beverages volume is down 24% for the quarter and 11% below prior year for the full year. There was a marked increase in imports of soft drinks mainly from Zambia and Mozambique in the second half of the year.

The sorghum beer volume is 17% down on prior year for the quarter and down 3% for the full year. The inaccessibility of certain markets was more pronounced in this category particularly in the Southern half of the country. The supply of Chibuku Super has stabilised following the commissioning of the new plants at Masvingo and Kwekwe.

Group revenue is down 15% and 10% for the quarter and full year respectively. The group's full year financial results are expected to be published on 11 May.

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 will the Group entities (Notified Intention). A further update will be issued when the full year results are published in May 2017."

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