Delta Corporation reported strong volume and revenue growth in the December quarter. The growth followed stable consumer spending and firm mineral prices. Increased mining activity and improved agricultural output also supported performance. The company confirmed this in a recent trading update.
The beverages maker said the operating environment was “largely conducive” during the quarter.This stability was supported by a steady ZiG exchange rate. Low inflation further strengthened consumer confidence. Higher diaspora remittances also boosted demand. Additionally, Schweppes was consolidated as a subsidiary from April 2025.
Group revenue rose 37 percent in the December quarter. Year-to-date revenue increased by 31 percent. More than 85 percent of domestic sales were conducted in foreign currency.
Beverage Categories Deliver Solid Volume Growth
Lager beer volumes increased 16 percent during the quarter. Volumes rose 19 percent over the nine-month period. These levels exceeded historical sales records.
Sorghum beer volumes grew 21 percent in the quarter. Nine-month volumes increased by 18 percent. The category recorded record daily sales despite rising competition.
Sparkling beverage volumes rose 18 percent in the quarter. Nine-month volumes increased by 14 percent. This figure includes Schweppes performance.
Schweppes alone recorded a 31 percent quarterly volume increase. Delta absorbed the sugar tax to protect pricing. However, management warned price adjustments may be necessary. This could occur if sugar tax and VAT increases persist.
Maheu emerged as the fastest-growing segment. Volumes doubled during the quarter. Nine-month volumes increased by 172 percent. Growth followed the Shumba Maheu relaunch in 2024.
Tax Matters, Regional Performance, and Expansion Plans
Delta and Schweppes paid US$20.3 million in sugar tax. Previously, the combined tax amounted to US$25.7 million.
The group is engaging ZIMRA over disputed tax assessments. The disputed amount totals US$73 million. These assessments cover the period from 2019 to 2022. Delta has already paid US$14.6 million. This followed the “pay now, argue later” principle.
Regionally, South Africa showed modest improvement. Lower fuel prices and interest rate cuts supported recovery. Zambian operations remained under pressure due to power shortages. However, gradual recovery signs are emerging.
Delta plans further investment to meet Zimbabwe’s strong demand. The company warned that geopolitical risks could affect growth. Rising input costs also remain a concern. Management confirmed capacity expansion projects are already underway.
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