Delta Corporation Sees Revenue Soar As Beer, Maheu And Soft Drink Sales Surge
Delta Corporation has reported strong volume and revenue growth in the December quarter, driven by stable consumer spending, firm mineral prices, increased mining activity, and improved agricultural output, the company said in a trading update.
The beverages maker said the operating environment during the quarter was “largely conducive”, supported by a stable ZiG exchange rate, low inflation, higher diaspora remittances, and the consolidation of Schweppes as a subsidiary from April 2025.
Delta’s group revenue rose 37 per cent in the December quarter and 31 per cent year-to-date, with more than 85 per cent of domestic sales conducted in foreign currency.
Lager beers recorded a 16 per cent increase in volumes for the quarter and 19 per cent over nine months, exceeding historical sales levels.
Sorghum beer volumes rose 21 per cent in the quarter and 18 per cent for the nine months, with record-breaking daily sales despite growing competition.
Sparkling beverages volumes, including Schweppes, increased 18 per cent in the quarter and 14 per cent over nine months.
Delta absorbed the sugar tax to maintain prices but warned that adjustments may be needed if the tax burden and VAT increase continue. Schweppes alone saw a 31 per cent rise in quarterly volumes.
The Maheu category was the fastest-growing segment, with volumes doubling in the quarter and up 172 per cent over nine months following the relaunch of the Shumba Maheu brand in 2024.
On taxes, Delta and Schweppes paid US$20.3 million in sugar tax during the period, compared to US$25.7 million previously.
The group is also engaged with ZIMRA over disputed foreign-currency-denominated tax assessments totalling US$73 million from 2019 to 2022, having paid US$14.6 million to date under the “pay now, argue later” principle.
Regionally, Delta reported modest improvement in South Africa, helped by lower fuel prices and interest rate cuts, while operations in Zambia remained under pressure due to power supply challenges, though gradual signs of recovery were emerging.
Delta said it plans to invest in expansion to meet high demand in Zimbabwe. The company noted that geopolitical developments and rising input costs could pose risks to the current growth momentum.
