Delta Corporation opened the 2026/27 financial year on a strong footing after first quarter revenue climbed 23 percent to US$294.6 million, underpinned by robust consumer demand, higher beverage volumes and a stable operating environment.
The beverages giant said total group beverage volumes increased 14 percent to about 3.4 million hectolitres during the quarter ended June 30, with its Zimbabwean operations recording an 18 percent increase.
The performance was driven by firm demand across lager beer, traditional sorghum beer, wines and spirits, as well as non alcoholic beverages, supported by low inflation, currency stability, improved agricultural output, increased mining activity and stronger consumer spending.
Lager beer volumes surged 17 percent, with mainstream brands leading growth while premium local beers such as Zambezi benefited from improved supply.
However, Delta said demand continued to outstrip production capacity in some brands and pack sizes despite imports from regional sister companies helping ease shortages.
The company said its brewery expansion programme remained on schedule, with upgrades at Southerton Brewery expected to boost production from the third quarter before the larger Belmont Brewery project comes on stream.
Traditional sorghum beer remained one of the strongest performers, with Zimbabwean volumes rising 20 percent compared to the same period last year.
Chibuku Super recorded 30 percent growth as stable pricing, improved product availability and stronger liquidity from mining and tobacco marketing supported demand.
The newly introduced Leopard Extra brand also continued to gain market acceptance as distribution expanded.
African Distillers posted one of the strongest performances in the group after volumes rose 43 percent.
Ready to Drink beverages increased 48 percent, wines grew 80 percent in the affordable segment, while spirits advanced 32 percent, led by Star Brandy.
The non alcoholic beverages portfolio grew 14 percent overall.
Sparkling beverages increased seven percent despite price adjustments linked to higher VAT, while Schweppes volumes jumped 37 percent following improved product availability and restored manufacturing capacity.
Maheu volumes remained flat as production constraints limited the company’s ability to meet demand.
Despite the strong trading performance, Delta said profitability came under pressure from higher fuel prices, freight costs, imported raw material expenses, PET packaging costs and the sugar tax.
During the quarter, the company accrued US$7.3 million in sugar tax across its non alcoholic beverage portfolio and said it continued engaging authorities over a review of the levy.
Delta also paid US$88.5 million in taxes during the quarter, maintaining its position as one of Zimbabwe’s largest taxpayers.
