The country’s largest beverages manufacturer, Delta Corporation has reported a 15.5% surge in profit after tax to US$116.1 million for the year ended March 31, 2025 going through a storm of economic headwinds including currency volatility, rising taxes and constrained consumer spending.
In a statement accompanying the company’s audited results Delta Corporation Chairman Todd Moyo despite challenges, business continued strong.
“Despite the fragile economy and unpredictable policy shifts, the business remained resilient. We continue to focus on generating positive cashflows and protecting the balance sheet in this volatile environment,” said Moyo
Revenue climbed to US$807.5 million, up from US$767.9 million in the prior year, with earnings before interest, tax, depreciation and amortisation (EBITDA) reaching US$171.5 million.
The growth was largely driven by the lager beer segment, which recorded an 8% volume increase, attributed to “improved supply of brands and packs and relatively competitive pricing.”
However, the company’s sparkling beverages unit struggled, posting a 4% decline in volumes. Management blamed the drop on the introduction of a sugar tax in January 2024 which led to price increases and a flood of cheaper imports.
“The sugar content surtax has undermined our price competitiveness and encouraged smuggling. We remain engaged with government on the need to moderate this tax to reduce its negative impact on economic growth,” Moyo said
The financial year was also marked by the devaluation of the Zimbabwe Gold (ZiG) currency and widening gaps between official and parallel exchange rates.
Delta admitted to applying estimated exchange rates in some financial translations, deviating from official rates, which led to a qualified audit opinion from Ernst & Young.
Delta is also locked in a US$74.8 million tax dispute with ZIMRA over historical assessments. The company insists the liabilities were settled in legal tender at the time and is challenging the case in court.
Despite the hurdles, Delta declared a final dividend of 2.3 US cents per share, bringing the total for the year to 3.3 cents.
“Our focus remains on seizing opportunities in the market while adapting to changing consumer behaviours,” Moyo said.
