Delta Sees Double-Digit Volume Growth as Consumer Spending Improves

DELTA Corporation has reported strong growth across most of its businesses during the third quarter ended 31 December 2025, driven by a stable economic environment, low inflation and improved consumer spending.

In a business update released this week, the company said trading conditions during the period were generally favourable. The ZIG exchange rate remained stable while inflation stayed low, helping to support consumer demand. Firm mineral prices, increased mining activity and improved agricultural performance boosted spending. Diaspora remittances also increased, supported by stronger exchange rates in key markets such as South Africa and the United Kingdom.

The stable currency environment allowed the group to fully resume festive-season promotions, marketing campaigns, and major events. Popular brand activations such as Castle Lager Braai Day, Chibuku Road to Fame finals, the Chibuku Super Cup and the Coca-Cola Food Fest helped stimulate beverage consumption during the quarter.

Delta noted that growth in the informal sector continued, reflecting pressure on formal retail channels and disruptions caused by new tax and liquor licensing regulations. Most retail transactions were conducted in foreign currency cash as businesses sought to avoid high costs associated with electronic payment platforms. The company said ongoing efforts to curb illicit trade and smuggling helped improve sales in some product categories.

Lager beer volumes grew by 16 per cent during the quarter and by 19 per cent for the nine months compared to the same period last year. Demand remained strong due to stable pricing and improved consumer incomes, with sales exceeding historical levels. The company continued to invest in production to meet demand and ensure product availability.

Sorghum beer also performed strongly, with volumes in Zimbabwe rising by 21 per cent for the quarter and 18 per cent for the nine months. The Chibuku brand recorded record daily sales during the period, supported by major cultural, music and sports events. Delta also expanded its product range with the launch of Leopard Extra, aimed at harmonising offerings across regional markets.

In South Africa, United National Breweries recorded volume growth of 10 per cent for the quarter and four per cent for the nine months, supported by growing acceptance of Chibuku Super in formal retail channels. Some disruptions linked to labour issues were reported during the year but have since eased. The company plans to reopen its KwaZulu-Natal brewery in the fourth quarter to expand market coverage and reduce logistics costs.

Operations in Zambia remained under pressure due to power shortages and market access challenges. Volumes were down 32 per cent for the year to date, although the company reported gradual performance improvement each quarter. Delta expects better power supply and lower input costs to support recovery.

Sparkling beverages volumes increased by 18 per cent for the quarter and 14 per cent for the nine months, supported by strong brands and the popular Share a Coke promotion. Pricing was kept moderate by absorbing part of the sugar tax, although the company warned that price increases may be necessary due to higher taxes and VAT. The Maheu category recorded exceptional growth following the relaunch of the Shumba Maheu brand, with volumes nearly doubling during the quarter.

African Distillers delivered a strong performance, with volumes up 64 per cent for the quarter and 51 per cent for the nine months. Growth was driven by strong festive season demand, particularly in ready-to-drink beverages, wines and brown spirits. Schweppes Holdings Africa also recorded solid growth after improved product supply and price moderation, and was consolidated as a subsidiary in April 2025.

At Nampak Zimbabwe, volumes were below last year due to power cuts and increased competition, although tobacco packaging volumes remained stable. Plans to sell Nampak International’s shareholding fell through and the focus has shifted to restoring competitiveness and improving efficiency.

Group revenue grew by 37 per cent for the quarter and 31 per cent year to date, mainly driven by higher sales volumes in Zimbabwe and the inclusion of Schweppes. More than 85 per cent of domestic sales were conducted in foreign currency. The group paid the equivalent of US$20.3 million in sugar tax during the year to date, down from US$25.7 million in the prior period, although the tax burden remains high.

The company also updated stakeholders on an ongoing tax dispute with the Zimbabwe Revenue Authority, which has assessed additional foreign currency taxes amounting to US$73 million for the period 2019 to 2022. Delta has paid US$14.6 million so far under existing payment plans and continues to engage with the authorities to resolve the matter. The outcome remains uncertain.

Looking ahead, Delta said it expects continued growth in Zimbabwe, supported by currency stability, declining inflation and improved availability of key raw materials. The group is investing in capacity expansion to meet rising demand, although global economic and geopolitical risks could increase input and transport costs. Gradual improvement is expected in Zambia, while operations in South Africa are showing signs of recovery under a more stable trading environment.