BEVERAGE giant Delta Corporation breached the US$1 billion revenue mark for the first time after group revenue surged for the year ended 31 March, while profit before tax climbed 56 percent to US$209 million as strong consumer demand, improved agricultural output and firm commodity prices boosted volumes across its businesses.
Operating income increased 42 percent to US$208 million as the group benefited from improved pricing mix, fixed-cost leverage and lower input and packaging costs.
Chief executive officer (CEO) Matihogonolo Valela said the group was benefiting from stronger consumer spending supported by mining, agriculture and construction activity across Zimbabwe.
“We are seeing a very strong consumer demand. FMCG goods, domestic construction and even some corporate activities in the construction sector suggest that money is being spent,” said Valela.
“And this is also coming from agriculture, cash crops, some food production, mineral prices and improved activity in the economy.”
The CEO said Zimbabwe’s relative economic stability had created a more favourable trading environment compared to previous years.
“When it comes to Zimbabwe itself, we are seeing relative stability. We are seeing stable growth rates as well as the economy is on a good start,” Valela said.
The lager beer division delivered a 10 percent increase in volumes during the year, anchored by continued strong demand for key brands.
Delta said demand at times exceeded available production capacity, resulting in intermittent supply gaps in certain markets.
Valela said the group was now investing aggressively to address capacity constraints after underestimating market demand.
“In some of our categories, we missed demand forecasts and we were pleasantly surprised by market support. CAPEX plans are now being implemented to correct that mismatch between supply and demand,” he said.
The group is rolling out major projects that include an additional packaging line, replacement of the brewhouse at Belmont Brewery and upgrades at Southerton Brewery.
The sorghum beer division recorded one of the strongest performances after volumes rose 19 percent to 4.62 million hectolitres, surpassing the previous historical peak achieved in 1998.
Delta attributed the growth to stronger rural incomes from tobacco sales, increased mining activity and heightened market activations.
The Chibuku Super brand won several regional quality awards during the year, while the group expanded its offerings through the launch of Leopard Extra.
In the non-alcoholic beverages segment, sparkling beverages volumes increased 14 percent during the year, while total soft drinks volumes including the consolidated Schweppes Holdings Africa Limited (SHAL) grew 16 percent to 3.1 million hectolitres.
Delta consolidated SHAL into its books after increasing its shareholding from 49 percent to 69 percent effective April 1, 2025, through the acquisition of an additional stake.
Despite the strong performance, Delta said the sugar content surtax continued to weigh heavily on the non-alcoholic beverages business, with the full-year sugar tax equivalent estimated at approximately US$30 million.
The group absorbed part of the levy to maintain affordability and defend volumes.
Valela said policy consistency and continued economic reforms remained important for business confidence and long-term investment planning.
“What is encouraging is the move towards a conditions-based de-dollarisation programme. That policy announcement is important for us in business because it means we can commit to a development agenda and expansion agenda with more confidence,” he said.
Delta also disclosed ongoing tax disputes with the Zimbabwe Revenue Authority (ZIMRA), which has assessed approximately US$97 million in additional taxes, penalties and interest relating to foreign currency-denominated tax obligations covering the period between 2019 and 2024.
The group said it had paid US$18.7 million as at March 31, 2026 under the “pay now, argue later” principle while continuing engagements with authorities and pursuing legal appeals.
Valela described the tax issue as largely arising from currency distortions experienced during the transitionary economic period.
“It’s not only a taxpayer issue. It is the currency chain distortion that has resulted in the crisis,” he said.
Looking ahead, Valela said Africa’s commodity-driven economies had an opportunity to benefit from global geopolitical shifts and rising commodity prices.
“The question is, will Africa take advantage of the rising global prices and spending to capitalise on what is happening today? Or will miss the boat?” he said.
