Presentation to Analysts

ANALYST BRIEFING FOR THE PERIOD ENDED 30 SEPTEMBER 2021

RETHINKING GROWTH

VIRTUAL PRESENTATION

PRESENTATION BY:

CHIEF EXECUTIVE OFFICER - MATTS VALELA

GROUP FINANCE DIRECTOR - ALEX MAKAMURE

10 November 2021 @ 15:00hrs to 16:00hrs

Meeting Link: https://mkutanoonline.com/webinar_login.php

AGENDA

1. WELCOME AND INTRODUCTION
2. TRADING REVIEW
3. FINANCIALS
4. DISCUSSION / QUESTIONS

TRADING ENVIRONMENT

Economic Factors

• Adapting to working and living with Covid-19 conditions.
• • Trading conditions relaxed in Q2.
• Global supply chains disrupted by Covid-19 and spikes in commodity prices.
• Congestion at Beitbridge border affecting logistics.
• IMF injection of SDR's to ideally steady regional currencies.

In Zimbabwe

• Consumer disposable income benefitting from:

❖Infrastructure spending

❖Improved agricultural outturn

❖Increased mining activities and firmer commodity prices ❖Diaspora remittances

❖Largely dollarised trading

TRADING ENVIRONMENT

Cont….

In Zimbabwe cont…

• Disruption to trading and flow of foreign currency post implementation of SI 127/2021.
• Resurgent inflation and exchange rate volatility in Q2.

In Zambia

• Positive vibes post election; appreciation of Kwacha, slower inflation.
• Difficult regulatory environment - excise non compliance by competitors.

In South Africa

• Disruptions arising from civil unrests in July 2021; impact on traders.
• Recovery as Covid-19 restrictions are relaxed.

VOLUME PERFORMANCE SUMMARY

			% Change on
Category	SEPTEMBER 2021	Prior Year
BEVERAGES (HLS 000)
F22	F21
Lager Beer
1.1	Clear Beer	872	57
Sorghum Beer
1.2	Sorghum Beer - Zimbabwe	1 834	68
1.3	Sorghum Beer -Zambia	389	(22)
1.4 Sorghum Beer -South Africa	565	118
Soft Drinks
1.5	Sparkling Beverages	584	95
1.6	Alternative Beverages	36	80
Total Delta Beverages	4 280	57
Wines and Spirits
1.7	African Distillers	62	66
Total excluding Associates	4 342	57
Associates
1.8	Schweppes Zimbabwe Limited	368	37
Total Beverages incl Associates	4 710	56