MARTIN MAWAYA
HARARE-Zimbabwe’s largest beverages maker, Delta Corporation, says revenue breached the US$1 billion mark for the first time in the group’s history after strong demand across its beer and soft drinks portfolio drove double-digit volume growth during the year ended March 31, 2026.
The group reported revenue of US$1,09 billion, representing a 35% increase from the prior year, while earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 42% to US$236 million.
Profit before tax surged 56% to US$210 million.
Delta said the performance reflected real consumer demand rather than currency distortions, with lager beer and sorghum beer volumes both growing 19% during the period.
“Consumers are choosing our brands in greater numbers across every category,” the company said in a media briefing accompanying the financial results.
A major highlight for the group was the performance of Chibuku, with sorghum beer volumes surpassing 4,6 million hectolitres, overtaking the previous peak recorded in 1998.
The company said the milestone demonstrated the resilience of formal alcoholic beverages despite competition from cheaper informal alternatives.
Sparkling beverages volumes rose 14%, while total non-alcoholic beverage volumes, including recently consolidated Schweppes Holdings Africa Limited (SHAL), increased 16% to 3,1 million hectolitres.
However, Delta warned that the sugar surtax regime continued to weigh heavily on the sector after the group absorbed nearly US$30 million in sugar tax costs to cushion consumers from price increases.
“The sugar content surtax remains above regional benchmarks. In our view, that may push some consumers toward unregulated, untaxed alternatives,” the company said.
SHAL contributed US$101 million in topline revenue after improved product supply and the introduction of new beverage categories such as Appletiser and Powerade.
Meanwhile, subsidiary African Distillers posted strong growth after localising cider production, with ready to drink beverages volumes increasing 62%, wines 57% and spirits 34%.
Delta said localisation had helped defend margins, reduce borrowings and limit grey market activity by improving local competitiveness.
Despite the strong financial performance, the group remains entangled in a tax dispute with the Zimbabwe Revenue Authority (Zimra), whose cumulative assessments against Delta and Afdis have risen to about US$97 million from US$73 million last year.
The additional US$24 million largely relates to the 2021 tax year, which Delta argues is based on a turnover-ratio method not explicitly provided for in the law at the time.
The beverages giant said it had already paid US$18,7 million under the “pay now, argue later” principle while contesting the assessments through the courts and engagement with tax authorities.
Delta further revealed that it paid more than US$306 million in taxes during the financial year, including excise duty, sugar surtax, corporate tax, VAT and PAYE, underscoring its importance to Treasury revenues.
The company said foreign currency sales in Zimbabwe had increased from 80% to more than 94%, although it continued to accept all currencies, including the ZiG.
Management also cautioned that regional operations were still weighing on overall profitability, while rising fuel and packaging costs linked to tensions in the Middle East had added pressure on operating margins.
