Delta Crosses US$1 Billion Mark as Beer Sales Surge Despite Tax Pressures

Leading beverages manufacturer, Delta Corporation Limited has reported its strongest financial performance in recent history with annual revenue surpassing US$1 billion for the first time driven by rising consumer demand for beer and soft drinks despite mounting tax pressures.

In its financial results for the year ended 31 March 2026, Delta said revenue rose by 35% to US$1.09 billion marking what executives described as a major milestone in the company’s history. Excluding the contribution from Schweppes Holdings Africa Limited (SHAL), revenue growth stood at 23%.

“Revenue crossed the US$1 billion mark for the first time in Delta’s history,” the company said attributing the growth to increasing demand across its product lines. “Consumers are choosing our brands in greater numbers across every category.”

The company said growth was underpinned by rising sales volumes rather than currency effects with both lager beer and sorghum beer recording 19% growth in volumes.

Sorghum beer, marketed under brands such as Chibuku Super reached a historic 4.6 million hectolitres surpassing the previous peak recorded in 1998.

“Sorghum Beer Zimbabwe surpassed 4.6 million hectolitres, exceeding the previous peak set in 1998,” Delta said describing the performance as evidence of strong consumer loyalty despite competition from informal alternatives.

Soft drinks also performed strongly with sparkling beverages volumes increasing by 14%, while total non-alcoholic beverage volumes including Schweppes climbed 16% to 3.1 million hectolitres.

However, Delta said it absorbed nearly US$30 million in sugar surtax costs in an effort to shield consumers from price increases.

“We absorbed about US$30 million in sugar surtax to help protect consumer affordability, rather than pass the full burden on,” the company said.

Delta warned that the country’s sugar surtax remained above regional levels and risked pushing consumers towards unregulated alternatives.

“The sugar content surtax remains above regional benchmarks. In our view, that may push some consumers toward unregulated, untaxed alternatives,” the company said.

Its subsidiary, African Distillers (Afdis) posted one of the strongest performances of the year with overall volumes increasing 50%, helped by localisation of cider production and growth in ready-to-drink beverages, wines and spirits.

Financially, Delta reported profit before tax of US$210 million, up 56%, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 42% to US$236 million.

Earnings per share also rose by 35% to 11.44 US cents.

The company also highlighted its growing contribution to government revenue saying it paid more than US$306 million in taxes during the year including VAT, excise duty, corporate tax and sugar surtax.

“As the business grows, its fiscal contribution also grows,” Delta said adding that government revenue and company growth were increasingly interconnected.

However, the beverages giant remains embroiled in a tax dispute with the Zimbabwe Revenue Authority (ZIMRA) which has issued cumulative tax assessments of approximately US$97 million up from US$73 million last year.

Delta disputes the assessments, arguing they stem from retrospective interpretations of tax laws during Zimbabwe’s currency transition period between 2019 and 2021.

“We paid our taxes in the legal tender of the day, at the rates required by law,” Delta said adding that it had already paid US$18.7 million under the “pay now, argue later” principle while contesting the claims in court.

Despite challenges including higher fuel costs, VAT increases and disruptions linked to global tensions in the Middle East, Delta said it remained optimistic about future growth.

“Delta is a stronger business today than at any point in its recent history,” the company said citing increased dividends, stronger shareholder equity and record beverage volumes.