Local beverage giant, Delta Corporation has reported a 5% increase in annual revenue, reaching US$807.4 million for the year ending March 2025. The growth comes amid mounting pressure from the recently introduced sugar tax and continued challenges in its regional operations.
The company, listed on the Zimbabwe Stock Exchange, acknowledged that the sugar tax—charged at US$0.001 per gram of added sugar—took a significant toll on its earnings. Delta forked out a total of US$21.1 million under the levy, with the soft drinks division alone accounting for US$14.7 million of that amount.
In a bid to cushion consumers, Delta chose not to pass on the full cost of the tax, a move that helped sustain demand but squeezed profit margins.
“Our strategy was to protect affordability, but this came at a cost to our bottom line,” said Finance Director Alex Makamure during an analyst briefing in Harare. “Coupled with increasing imports of cheaper beverages, the environment remains highly competitive.”
Delta’s operations in South Africa and Zambia continue to face turbulence, driven by currency fluctuations and weak consumer spending. These markets, once seen as promising avenues for growth, are now proving to be a drag on the group’s performance.
Despite these hurdles, Delta executives remain upbeat. CEO Matlhogonolo Valela said the company is adapting its strategies to defend its market position and respond to changing consumer preferences.
“We are investing in capacity expansion, innovation, and modernisation of our production facilities,” he said. “Our focus is on efficiency and capturing value in both domestic and export markets.”
Financial analysts noted that while the reported revenue fell below forecasted estimates of between US\$862 million and US\$870 million, the result still signals resilience in a tough economic climate.
“Delta’s ability to grow in this environment shows strong fundamentals, even though margins are under pressure,” said Sylvester Mupanduki of the Southern Markets Research Institute.
Brighton Musonza, another market watcher, called Delta’s performance “an economic litmus test,” adding that its progress could hint at broader macroeconomic trends in Zimbabwe. “Without clear and stable economic policies, this growth risks being uneven and exclusionary,” he said.
